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A Hong Kong court has ordered the liquidation of heavily indebted Chinese construction company Evergrande. Evergrande shares fell more than 20 percent following the announcement.
Judge Linda Chan said Monday she found the move appropriate and ordered the move, given the company’s “apparent lack of progress in presenting a workable restructuring plan.”
Shortly after, the Hong Kong stock exchange announced it would halt trading in securities of Evergrande and its electric vehicle subsidiary.
Postponement until Monday
In early December, Judge Chan granted the struggling company a reprieve from submitting a restructuring plan to stave off the threat of liquidation. This period expired on Monday.
Evergrande is at the center of China’s construction industry crisis. In 2020, Chinese authorities responded to the industry’s rising debt by imposing restrictions on borrowing. This led to payment defaults and project cancellations, especially at Evergrande. The group filed for bankruptcy in 2021. It has accumulated debt of over 300 billion euros. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
