Evergrande rejects report it artificially ‘inflated revenue,’ court delays liquidation hearing

Real Estate

NANJING, CHINA – AUGUST 18, 2023 – Aerial photo shows a residential area of Evergrande in Nanjing, East China’s Jiangsu province, Aug 18, 2023. (Photo by Costfoto/NurPhoto via Getty Images)
Getty Images

Shares of Evergrande Group rose over 9% as the beleaguered Chinese property firm’s court hearing over its possible liquidation was postponed to Jan. 29, 2024.

The firm was originally scheduled to face a Hong Kong court hearing on Monday over a petition from a creditor seeking to wind up the company.

Shares in the firm that was once China’s largest private sector developer by sales have plummeted almost 85% so far this year.

Stock Chart IconStock chart icon

hide content

Justice Linda Chan from Hong Kong’s High Court had earlier pushed back the hearing from Oct. 30 to Dec. 4, while warning Evergrande to come up with a revised restructuring proposal before the hearing date or else the company could be wound up.

Top Shine, an investor in Evergrande unit Fangchebao, had filed a petition in June 2022 seeking to wind up the property firm.

A group of offshore creditors has been demanding controlling equity stakes in the property developer and its two Hong Kong subsidiaries as part of its revamped restructuring proposal, Bloomberg reported on Friday, citing sources with knowledge of the matter.

Reuters had reported on Thursday that Evergrande’s new proposal offers creditors a 17.8% stake in the group, in addition to 30% stake in each of its Hong Kong units — Evergrande Property Services Group and Evergrande New Energy Vehicle Group.

The agency, however, reported that creditors were unlikely to accept Evergrande’s new proposal, given low recovery prospects and growing concerns about its future.

Articles You May Like

Alexei Navalny, Russian opposition activist, 1976-2024
UK economy slipped into recession in 2023
Will governments figure out the Inflation Reduction Act tax credits?
Eurozone collective wage growth slows for first time since 2022
2 out of 5 industrial stocks are at record highs. Here’s our post-earnings outlook on all of them