China Evergrande, a major property developer, has been ordered by the court to undergo liquidation due to its failure to reach a debt agreement.

A Hong Kong court has ordered China Evergrande Group, a property developer, to go into liquidation as it failed to reach a restructuring agreement with its creditors. Judge Linda Chan stated that the court’s decision was warranted due to the company’s lack of progress in presenting a viable restructuring proposal and its insolvency. Evergrande had been given a temporary reprieve in December as it worked on refining a new debt restructuring plan worth over $300 billion. However, Fergus Saurin, a lawyer representing a group of creditors, expressed no surprise at the outcome, citing the company’s failure to engage with them. Evergrande, known as the world’s most indebted property developer, fell into financial trouble along with other Chinese property firms following regulatory crackdowns on excessive borrowing in the real estate sector. This marks the latest setback for Evergrande, which first defaulted on its financial obligations in 2021.

A Hong Kong court has ordered China Evergrande Group, a major property developer, to liquidate after failing to reach a restructuring deal with creditors. The court ruling came due to the company’s lack of progress in presenting a viable restructuring proposal and its insolvency. Evergrande, which is the world’s most indebted property developer, had previously sought a brief reprieve in December to refine its debt restructuring plan worth over $300 billion. An ad hoc group of creditors expressed no surprise at the outcome, stating that the company had failed to engage with them. Evergrande’s financial troubles began in 2021 following Chinese regulators’ crackdown on excessive borrowing in the real estate sector.

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