4th December 2023 – (Hong Kong) A hearing regarding the liquidation petition against China Evergrande Group was adjourned in a Hong Kong court, with the judge calling upon the embattled property developer to engage in discussions with relevant authorities regarding the terms of debt restructuring. The adjournment sets the next hearing for January 29, according to the court’s announcement on Monday, following a request for adjournment made by Evergrande’s legal team, who stated that no creditors were actively seeking the liquidation of the company.
China Evergrande Group, the most indebted property developer globally with over $300 billion in total liabilities, faced a default on its offshore debt in late 2021, making it a symbol of the debt crisis that has engulfed China’s property sector. The liquidation hearing resumed in the Hong Kong court on Monday amidst uncertainty about Evergrande’s ability to present a concrete debt restructuring proposal, as previously ordered by the court in October.
In response to the situation, Evergrande worked hastily last week to formulate a revised restructuring plan. During the court proceedings, the company’s lawyer stated that if the adjournment was granted, Evergrande anticipated refining its restructuring proposal within the next five weeks. The judge, in turn, urged Evergrande to engage in direct discussions with the relevant authorities regarding the revamped terms.