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A Hong Kong court has ordered China Evergrande to be wound up, in a ruling that opens a new and unpredictable phase in the collapse of the world’s most indebted property developer.
Hong Kong High Court Judge Linda Chan issued the liquidation order on Monday after the developer was unable to come up with a restructuring plan that would satisfy international creditors, despite months of negotiations.
“It would be a situation where the court says enough is enough,” Chan said. “I consider that it is appropriate for the court to make a winding up order against the company, and I so order.”
Evergrande had more than $300bn in liabilities when it defaulted in 2021.
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