A Hong Kong court has ordered China Evergrande to be wound up.
High Court judge Linda Chan issued the liquidation order on Monday after the world’s most indebted property developer was unable to come up with a restructuring plan that would satisfy international creditors, despite months of negotiations.
The decision will allow a liquidator to attempt to take control of Evergrande assets outside China, and could open up other lawsuits related to the billions of dollars of losses related to its collapse.
Its practical implications on the Chinese mainland, where almost all of Evergrande’s assets and the vast majority of its more than $300bn in liabilities are located, remain uncertain as it is not clear that mainland courts will accept the Hong Kong winding-up order.
