Evergrande, once heavily indebted, has officially collapsed.

This morning (January 29), Judge Linda Chan (Hong Kong) delivered her ruling on Evergrande. She stated that the company failed to present a reasonable restructuring plan despite months of delay in the trial.

"Currently, the court has found that enough has been done," she emphasized.

The judge said he would announce more details about the decision this afternoon. Experts believe the court will appoint someone to be temporarily responsible for Evergrande's assets.

This company currently has approximately $240 billion in assets, but is burdened with over $300 billion in debt. They are considered the most indebted company in the world .

Evergrande defaulted on its international debt at the end of 2021, becoming a prime example of the crisis in the Chinese real estate market.

Evergrande's housing project in Beijing (Photo: Reuters)

Previously, the group had been working on a debt restructuring plan worth $23 billion for a special group of bondholders for nearly two years. However, this initial plan failed at the end of September last year when billionaire Xu Jiayin, the founder of Evergrande, came under investigation.

"Evergrande's liquidation of assets signals that China is prepared to go all out to end the property bubble. This could have a positive impact on the economy in the long term, but will create difficulties in the short term," Andrew Collier, director of research firm Orient Capital Research, told Reuters .

The Evergrande liquidation ruling could shake China's already fragile capital and real estate markets.

The Chinese real estate market remains mired in crisis. The stock market has also hit a five-year low. News about Evergrande could make the situation even worse.

Source: https://dantri.com.vn/bat-dong-san/chua-chom-evergrande-chinh-thuc-sup-do-20240129114808627.htm