China Evergrande's unit receives liquidation order from Hong Kong court

China Evergrande New Energy Vehicle

13/01/2025 11:20

Jan 13 (Reuters) - China Evergrande  3333.HK  said on
Monday that a court in Hong Kong had ordered one of its key
offshore units to be wound up, the latest in a slew of legal
victories for the embattled developer's liquidators.
    The liquidators had filed a winding-up petition against
company subsidiary CEG Holdings BVI in September, in a bid to
recover funds from the debt-laden property company that
defaulted in 2021 and triggered China's real estate market
crisis.
    Evergrande, the world's most indebted property developer
with more than $300 billion of liabilities, was ordered by the
Hong Kong High Court in January 2024 to liquidate after it
failed to offer a concrete restructuring plan for its $23
billion offshore debt. 
    The firm's liquidators — Edward Middleton and Tiffany Wong
of Alvarez & Marsal Asia — have been striving to recover at
least a slice of what creditors are currently owed, and recoup
$6 billion in remuneration and dividends given to individuals,
including its founder. 
    They have also initiated legal action against Evergrande's
auditor, PricewaterhouseCoopers LLP, and began court proceedings
against commercial real estate services company CBRE Group,
according to a Financial Times report. 
    Trading in shares of China Evergrande, suspended since Jan.
29, 2024, will remain suspended, the company said. 
    

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by
Shinjini Ganguli)
 ((Rishav.Chatterjee@thomsonreuters.com;))