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Hong Kong court orders promoter to wind down operations after finding the company has no viable restructuring plan.
Ailing Chinese real estate giant Evergrande Group has been ordered to liquidate, a move likely to deal a further blow to confidence in the world’s second-largest economy.
A Hong Kong court issued its ruling Monday after the company failed to convince a judge it had a workable plan to restructure some $300 billion in debt.
“This would be a situation where the court would say enough is enough,” Judge Linda Chan said. “I consider it appropriate for the court to make a winding-up order against the company, and I order it.”
Evergrande received a brief reprieve in December after saying it was seeking to refine its restructuring plan.
Evergrande, the world’s most indebted developer, sent shockwaves through China’s vital real estate sector when it defaulted on its debt in 2021 following a crackdown by authorities on excessive lending.