A Hong Kong court has ordered one of China’s biggest property developers, Evergrande Group, to liquidate after it was unable to reach a restructuring deal with creditors over hundreds of billions of dollars it owes.

Key points:

  • Evergrande has been ordered to liquidate after failing to come up with a restructuring deal with creditors over US$300 billion in debts owed
  • The liquidator will now attempt to take control of Evergrande assets outside China, but there are fears that could pave the way for other lawsuits
  • It could take years for the offshore liquidator to take control of subsidiaries across mainland China
  • maynarkh@feddit.nl
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    10 months ago

    This Evergrande business has been hanging in the air for years now. I wonder what this news means in practice.

    • kaitco@lemmy.world
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      10 months ago

      Same. I feel like I’ve been waiting for this Sword of Damocles to fall for the last decade. Until they actually break up, however, I’m still curious to see the ramifications.

      • girlfreddy
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        10 months ago

        China should have just ripped the bandaid off years ago.

        • maynarkh@feddit.nl
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          10 months ago

          I wonder if ripping it off might have caused a big enough economic problem to threaten the stability of the government.

          • girlfreddy
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            10 months ago

            They probably weighed what would happen then vs supporting the business for a while. Problem is no one can tell the future, so they got caught.

            • maynarkh@feddit.nl
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              10 months ago

              It may be the best case scenario for them still. This could be their “economic soft landing”.