The Hong Kong Court approved the liquidation of the developer Evergrande

The Hong Kong court has decided to liquidate the Chinese developer China Evergrande Group. This decision was made after considering a lawsuit by the investment company Top Shine Global, which accused Evergrande of non-payment of debt in the amount of HK$ 863 million (approximately $110 million).

Sean Xiu, Chief Executive Officer of Evergrande, expressed regret over this decision and assured that the company would continue the construction of real estate and the normal operations of the group.

After the announcement of the liquidation, Evergrande shares fell by 20% at auction in Hong Kong and trading was suspended. The capitalization of the company, which previously amounted to many billions of dollars, was reduced to about $275 million at the time of the suspension of trading.

Evergrande, which has debt obligations of more than $300 billion, defaulted at the end of 2021 and submitted a debt restructuring plan in March 2023. However, the company was unable to reach an agreement with creditors on debt restructuring. 

The Hong Kong court's decision begins the process of liquidation and sale of Evergrande assets in favor of creditors. However, the situation is complicated by the fact that bankruptcy decisions made in Hong Kong are not always recognized in mainland China, and the Chinese authorities may appoint their own administrators. Most of the company's assets are located in Hong Kong.