Judge Linda Chan said on Monday she found the move appropriate given the company’s “apparent lack of progress in presenting a viable restructuring plan” and ordered the measure.
Moments later, the Hong Kong Stock Exchange announced it would stop trading securities of Evergrande and its electric vehicle subsidiary.
Construction sector in crisis
In early December, Judge Chan granted the troubled company a stay from submitting a restructuring plan to avert the threat of liquidation. This deadline expired on Monday.
Evergrande is at the center of the crisis in China’s construction industry. In 2020, Chinese authorities responded to the sector’s escalating debt burden with restrictions on obtaining loans. This led to payment delays and project cancellations, especially at Evergrande. In 2021, the group filed for bankruptcy proceedings. He has built up the equivalent of more than 300 billion euros in debt. (lak/sda/afp)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
