- The company's shares on the stock market have been frozen since mid-March after losing 90% of their value.
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| Evergrande. |
A court postpones the liquidation petition hearing against Evergrande until March 2023
The Hong Kong Justice today postponed the hearing on the liquidation petition that a foreign creditor filed in June against the indebted Chinese real estate giant Evergrande, so that it will be held on March 20, 2023, the local economic news portal AAStocks reports on Monday.
Evergrande's chief executive, Shawn Siu, said the decision meets the expectations of the company, which has vowed to demonstrate its commitment to its creditors through "action and progress."
On June 28, Top Shine Global Limited -a company registered in Samoa owned by local investor Lin Ho Man- filed the aforementioned petition alleging that Evergrande had breached its commitment to repurchase shares for 862.5 million Hong Kong dollars (110 million dollars, 107 million euros) from one of its subsidiaries.
The Hong Kong Justice had already postponed the hearing on the complaint on at least two occasions.
Evergrande, which in the middle of last year accumulated liabilities of more than 300,000 million dollars and defaulted on some of its bonds, was seized by the Chinese authorities and is trying to get rid of its assets, getting as much money as possible while Preparing a restructuring plan.
Cross insolvency
The company's shares on the Hong Kong Stock Exchange have been frozen since mid-March after having lost almost 90% of their value since the beginning of 2021, and the operator of the floor has already warned the company of the possibility of its expulsion if continues without disclosing its income statements, since the last of these publications corresponds to the first half of last year.
After failing to meet its financial obligations, Evergrande incurred a situation of 'cross-default' ("cross insolvency"), in which the default against a single creditor is enough for others to claim the repayment of their loans.
The financial position of many Chinese real estate companies worsened after, in August 2020, Beijing announced restrictions on access to bank financing for developers that, like Evergrande, had accumulated a high level of debt, supporting their growth for years with aggressive leverage policies.
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Economics