High Court adjourns winding-up petition against troubled Evergrande to 20th March

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28th November 2022 – (Hong Kong) Online real estate and automobile marketplace Fangchebao (FCB) which invested in Evergrande’s unit filed a winding-up petition in the High Court earlier against Evergrande. The High Court adjourned the case to 20th March next year to allow the Evergrande to formulate its debt restructuring.

The China Evergrande Group is the second largest property developer in China by sales. It is ranked 122nd on the Fortune Global 500. It is incorporated in the Cayman Islands, a British Overseas Territory, and headquartered in the Houhai Financial Center in Nanshan DistrictShenzhenGuangdong Province, China. It was founded in 1996 by Xu Jiayin. It sells apartments mostly to upper- and middle-income dwellers. In 2018, it became the most valuable real estate company in the world.

On 17th December 2021, Evergrande was officially declared to be in default by S&P Global after missing a bond payment earlier in the month. On 3rd January 2022, Evergrande shares were suspended from trading, without a reason being provided by the company.  They resumed trading a day later and stock prices rose by 10%. On 15th March 2022, Evergrande’s share price sank to a new all-time low of HK$1.16 (US$0.15), down from a high of over HK$31 in October 2017.

On 30th March 2022, Evergrande announced the decision to sell its Crystal City Project in Hangzhou for 3.66 billion yuan to Zhejiang Zhejian Real Estate Group and Zhejiang Construction Engineering Group, using the proceeds to repay construction debt of 920.7 million yuan to Zhejiang Construction Engineering. The deal is expected to post a gain of about 216 million yuan.

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