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IPFS News Link • Business/ Commerce

Evergrande Faces Final Chance to Avoid Liquidation by HK Court

• by Dorothy Ma

China Evergrande Group faces a Hong Kong court hearing on Monday over a creditor request to wind up the company, a lawsuit that's lingered for about 18 months. The developer must convince the judge that it has a concrete debt restructuring plan. Failure to do so will likely mean liquidation, leading to more chaos in its operations and further denting sentiment in the housing market.

"If Evergrande fails to deliver an improved restructuring plan that meets the demands of the ad hoc group of creditors, the Hong Kong court is very likely to grant a winding-up order against the company," said Lance Jiang, a partner at law firm Ashurst LLP.

Evergrande is trying to salvage its multi-billion dollar debt overhaul since a slew of setbacks derailed the process in recent months.