On December 4, according to the Hong Kong Economic Times, the hearing of China Evergrande’s liquidation petition originally scheduled for December 4 was postponed to January 29 next year. The group said that it would take time to discuss the restructuring plan, so it requested a five-week postponement, and the remaining creditors did not object to the postponement of the application. The debt scale of the housing company is as high as 2 trillion yuan.
One of the key factors is the progress of Evergrande’s overseas workout. In September, the group said it had to reassess its overseas workout plan and said it could not meet China’s requirements to issue new bonds. Previously, it was reported that in the revised workout plan, the group offered 17.8% of the group’s shares in addition to the offer of 30% shares in two Hong Kong subsidiaries of Evergrande Property and Evergrande Automobile to creditors.
This is the sixth extension of the liquidation hearing of China Evergrande Hong Kong. In June last year, creditors filed a liquidation petition against Evergrande in the High Court of the Hong Kong Special Administrative Region of China. At that time, the hearing was scheduled for August 31, 2022. Subsequent to that, the hearing has been postponed five times. On October 30 this year, the group announced that the Hong Kong High Court had postponed the liquidation hearing to December 4.
After a long road to restructuring, Evergrande has yet to see a clear turnaround. There are reports that if the company submits relevant plans to meet the set standards, the court is "likely" to issue a winding-up order at the next hearing.
Reporter, Tianyue Yang
According to the Beijing Daily client side