China’s most indebted property developer, China Evergrande, was ordered to liquidate by a Hong Kong court today, a move that could potentially destabilise the already trembling Chinese capital and property markets. The liquidation process could be intricate due to the multiple authorities involved and the potential political implications.
Following the order for liquidation, a provisional liquidator will be appointed, followed by an official liquidator who will then be tasked with managing and preparing the developer’s assets for sale to clear its debts. The liquidators may suggest a new debt restructuring plan to offshore creditors, who hold debt worth US$23 billion in Evergrande if they conclude the company possesses sufficient assets or if a likely investor emerges.
Moreover, the liquidators will be responsible for investigating the company’s…
