Today, the "lord" Evergrande Group appeared in court in Hong Kong to resolve creditors' demands for the group to be dissolved.
However, the court postponed a decision on the ultimate fate of the world's most indebted "real estate developer", giving Evergrande Group more opportunities to reach a restructuring agreement with creditors.
At the Hong Kong High Court, Judge Linda Chan said the proceedings were adjourned until January 29, 2024. The decision to adjourn the proceedings came after the petitioner did not want Evergrande to be dissolved immediately today.
With this landmark decision, Evergrande has eight more weeks to reach an agreement with foreign creditors on what could be the largest restructuring in Chinese history.
The decision to postpone the case came as a surprise, as Judge Linda Chan had said at the last hearing in late October that it would be the last. The news sent Evergrande shares up more than 13% this morning in Hong Kong. They have fallen more than 20% since the start of the year.
Evergrande has more chances to reach a restructuring agreement with creditors (Photo: Global Times).
Evergrande's lawyer said the company submitted a new proposal on November 26 and is looking forward to receiving support and feedback from creditors.
Evergrande’s foreign creditors have demanded a controlling stake in the company and two Hong Kong subsidiaries as part of a debt deal, Bloomberg reported.
Evergrande has proposed selling a 17.8% stake in the parent company and a 30% stake each in its subsidiaries Evergrande Property Services Group and China Evergrande New Energy Vehicle Group.
China's property crisis is getting worse despite the government's support measures. The International Monetary Fund (IMF) has warned that the crisis could spread to the financial sector and local governments if confidence does not return.
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