China Evergrande's unit receives liquidation order from Hong Kong court
The liquidators had filed a winding-up petition against company subsidiary CEG Holdings BVI in September
CHINA Evergrande said on Monday (Jan 13) that a court in Hong Kong had ordered one of its key offshore units to be wound up, the latest in a slew of legal victories for the embattled developer’s liquidators.
The liquidators had filed a winding-up petition against company subsidiary CEG Holdings BVI in September, in a bid to recover funds from the debt-laden property company that defaulted in 2021 and triggered China’s real estate market crisis.
Evergrande, the world’s most indebted property developer with more than US$300 billion of liabilities, was ordered by the Hong Kong High Court in January 2024 to liquidate after it failed to offer a concrete restructuring plan for its US$23 billion offshore debt.
The firm’s liquidators – Edward Middleton and Tiffany Wong of Alvarez & Marsal Asia – have been striving to recover at least a slice of what creditors are currently owed, and recoup US$6 billion in remuneration and dividends given to individuals, including its founder.
They have also initiated legal action against Evergrande’s auditor, PricewaterhouseCoopers, and began court proceedings against commercial real estate services company CBRE Group, according to a Financial Times report.
Trading in shares of China Evergrande, suspended since Jan 29, 2024, will remain suspended, the company said. REUTERS
Share with us your feedback on BT's products and services
