The court set deadlines for Evergrande on transactions with creditors before liquidation
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Today, October 30, Hong Kong High Court postponed hearings, which should consider the restructuring plan of the Chinese developer China Evergrande Group, on December 4. Evergrande said at the hearing that the company was preparing an updated restructuring plan and was also looking to sell two of its Hong Kong-listed units to raise additional funds. At the same time, Judge Linda Chan said that the December hearing will be the last and, if Evergrande cannot reach an agreement with creditors by this time, then liquidation will be discussed. The company’s shares fell 20% today.
Evergrande crisis continues since 2021, when it became known about the holding’s serious financial problems. Evergrande went through a complex restructuring process and resumed trading in shares at the end of August after a 17-month hiatus. However, at the end of September it became known that the founder and chairman of the board of directors of the group, Xu Jiayin, was detained by the police and is under investigation. Evergrande said the investigation prevented it from issuing new debt and thereby preventing it from implementing its debt restructuring plan.
Evergrande’s debts reached $332 billion as of June. Many creditors have criticized the company, believing that its management is not doing enough to convince the regulator leading the investigation of the need for restructuring. Evergrande has contacted several creditors in recent weeks, offering them an updated restructuring plan, Reuters reported, citing sources.
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