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submitted 7 months ago by MicroWave@lemmy.world to c/world@lemmy.world

A Hong Kong court has ordered one of China's biggest property developers, Evergrande Group, to liquidate after it was unable to reach a restructuring deal with creditors over hundreds of billions of dollars it owes.

Key points:

  • Evergrande has been ordered to liquidate after failing to come up with a restructuring deal with creditors over US$300 billion in debts owed
  • The liquidator will now attempt to take control of Evergrande assets outside China, but there are fears that could pave the way for other lawsuits
  • It could take years for the offshore liquidator to take control of subsidiaries across mainland China
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[-] kaitco@lemmy.world 21 points 7 months ago

Same. I feel like I’ve been waiting for this Sword of Damocles to fall for the last decade. Until they actually break up, however, I’m still curious to see the ramifications.

[-] girlfreddy@lemmy.ca 11 points 7 months ago

China should have just ripped the bandaid off years ago.

[-] maynarkh@feddit.nl 8 points 7 months ago

I wonder if ripping it off might have caused a big enough economic problem to threaten the stability of the government.

[-] girlfreddy@lemmy.ca 5 points 7 months ago

They probably weighed what would happen then vs supporting the business for a while. Problem is no one can tell the future, so they got caught.

[-] maynarkh@feddit.nl 4 points 7 months ago

It may be the best case scenario for them still. This could be their "economic soft landing".

this post was submitted on 29 Jan 2024
133 points (95.9% liked)

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