Evergrande Faces Imminent Liquidation After Talks With Top Creditors Break Down
Negotiations to prevent the break up of Evergrande didn’t lead to a deal over the weekend, people familiar with the matter said
What happens is that China gets the money and other shareholders get nothing.
Months later, the firm defaulted on its offshore debt obligations,
who isn’t going to get any marbles?
Ha ha
And
That’s a shame
Years ago I had a customer go Chapter 11 (Florida).
I got ZERO. And man did I get my eyes opened about the process in Florida’s system. If you expect anything when extending credit to a small business, you had better get a signed personal guarantee. You may not get much, but at least it will be a piece of their personal assets. If they haven’t moved them into someone else’s hands.
Credit is based on character. And interest rates should be based on risk, not what some WEF toady dictates.
High Court orders Evergrande to wind up in Hong Kong’s first liquidation, as the world’s most indebted property developer reaches a dead end
The company, with US$328 billion of liabilities, can still appeal against the order
The provisional liquidator of the company will be named at a 2:30pm hearing today
Evergrande’s liquidation is ordered by Hong Kong court
HONG KONG — A Hong Kong court on Monday ordered the liquidation of China Evergrande Group, the heavily indebted developer at the heart of the property crisis in Asia’s biggest economy.
After Evergrande failed over the weekend to reach a deal to restructure more than $300 billion in liabilities, Justice Linda Chan granted a winding-up petition filed by offshore creditors more than a year ago.
Citing an “obvious lack of progress” and “the insolvency of the company,” Chan told a packed courtroom, “I consider that it is appropriate for the court to make a winding-up order against the company, and I so order a winding-up order.”
Under Chan’s order, liquidators will be appointed to take control of the developer and sell its assets. The winding-up will occur as the Chinese property sector struggles to recover after the pandemic.
The move will also provide a test case for a 2021 arrangement on cross-border insolvency procedures that enables Hong Kong decisions to be recognized in mainland courts.
Evergrande could not be reached for comment. Top Shine Global, an offshore creditor that filed the winding-up petition against China Evergrande Group in June 2022, declined to comment.
Hopefully Blackrock and Vanguard will be next.
Communists having a difficult time doing capitolism?