Evergrande Wind-Up Hearing Opens Bumpy Path Toward Liquidation
- Hong Kong court to mull over wind-up request on Oct. 30
- Developer faces ‘high risk’ but liquidation wouldn’t be easy
Unfinished buildings at a China Evergrande Group development on the outskirts of Nanjing, China, in 2021.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
A hearing for China Evergrande Group in a Hong Kong insolvency court later this month will lay bare the once-unthinkable possibility of liquidating the property developer’s assets.
A wind-up order from Judge Linda Chan after the Oct. 30 hearing would wreak havoc on the struggling company that’s trying to finalize a restructuring plan to pay back creditors. Any efforts to wind up the world’s most indebted developer — even if difficult to enforce in mainland China — would provide a roadmap for other developers and creditors on how a liquidation of such magnitude may play out.