China Evergrande (OTCMKTS:EGRNQ) is catching the eyes of investors on Monday as the Chinese real estate developer has been given a liquidation order.
China Evergrande is a major real estate developer in China and has been dragging down that sector for over a year now. Those problems have finally come to a head with the company having to liquidate its business, as the company owes $333 billion.
Let’s get into everything traders need to know about the China Evergrande liquidation.
China Evergrande Liquidation Details
- The liquidation order for China Evergrande comes from a Hong Kong court.
- That follows 19 months of negotiations to restructure the failing real estate company.
- Investors will also note that the company filed for bankruptcy in New York in 2023.
- Alvarez and Marsal has been appointed as the liquidator of the company.
- This gives it the right to take and sell its assets to pay back the debts owed by China Evergrande.
- However, the order doesn’t affect the subsidiaries of China Evergrande, which are their own legal entities.
- That includes Hengda Real Estate Group, which manages the majority of its assets in mainland China.
- China Evergrande first defaulted on its debt back in 2021, which was a major blow to China’s economy.
- It may also be difficult for creditors to get their money back out of the company, as its assets total $240 billion.
- China Evergrande may appeal the liquidation order but the process will “proceed pending the outcome of the appeal.”
Investors looking for more of the latest stock market stories are going to want to stick around!
We have all of the hottest stock market stories that traders need to know about on Monday! Among that is what’s going on with shares of iRobot (NASDAQ:IRBT), Spirit Airlines (NYSE:SAVE) and Warner Bros Discovery (NASDAQ:WBD) stock today. You can read this news at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
