China Evergrande Ordered To Liquidate by Hong Kong Court

China Evergrande, the Chinese real estate developer that has become a symbol of what has been described as an unprecedented debt crisis in China, has been ordered by a Hong Kong court to liquidate after failing to restructure hundreds of billions of U.S. dollars owed to banks and bondholders, the AP is among outlets to report. The source said that Evergrande owes approximately US$25.4 billion to foreign creditors and has roughly US$240 billion in total assets — an amount “dwarfed by its total liabilities.” One lawyer representing a group of creditors said that, in terms of a restructuring gameplan, Evergrande has “a history of last-minute engagement, which has gone nowhere.” One of the court-appointed liquidators said the priority is to ensure “as much of the business as possible is retained, restructured and remains operational.” One observer said the liquidation is more likely to affect foreign investors and their confidence in the Chinese market rather than Evergrande’s operations in China, although there is housing that has been paid for but not yet delivered.