"Lord" Evergrande officially collapsed

This morning (January 29), Judge Linda Chan (Hong Kong) issued a verdict on Evergrande. She said the company could not come up with a reasonable restructuring plan despite the trial being delayed for many months.

"At present, the court finds that this is more than enough," she stressed.

The judge said he would announce more details of the decision this afternoon. Experts say the court will appoint a temporary conservator for Evergrande's assets.

The company currently has about $240 billion in assets, but is saddled with more than $300 billion in debt. They are considered the most indebted company in the world .

Evergrande defaulted on its international debt in late 2021 and became a typical example of the crisis in China's real estate market.

Evergrande's housing project in Beijing (Photo: Reuters)

The group had been working on a plan to restructure $23 billion in debt to a special group of bondholders for nearly two years. However, the initial plan failed in late September last year when billionaire Hui Ka-yin, the founder of Evergrande, was investigated.

"Evergrande's asset liquidation is a signal that China is willing to go to the end to end the real estate bubble. This may have a positive impact on the economy in the long term, but will cause difficulties in the short term," Andrew Collier, director of research firm Orient Capital Research, told Reuters .

The Evergrande liquidation ruling is likely to shake China's already fragile capital and property markets.

China’s property market remains mired in crisis. Stock markets have also hit five-year lows. The Evergrande news could make matters worse.

Source: https://dantri.com.vn/bat-dong-san/chua-chom-evergrande-chinh-thuc-sup-do-20240129114808627.htm