Evergrande, the troubled real estate giant in China, is facing a major setback as it has been ordered to go through liquidation. This development is expected to have a negative impact on the confidence in the country’s second-largest economy. The decision was made by a Hong Kong court on Monday, after Evergrande failed to persuade the judge that it had a viable plan to restructure its massive debt of approximately $300 billion.
Judge Linda Chan stated, “Enough is enough,” highlighting the court’s sentiment towards the situation. She deemed it suitable to issue a winding-up order against the company. Evergrande temporarily avoided liquidation in December by presenting its intention to refine the proposed restructuring plan.
As the most indebted developer globally, Evergrande’s default on its debt in 2021 following a government crackdown on excessive lending sent shockwaves throughout China’s crucial property sector.
