Hong Kong court orders liquidation of Evergrande, China’s biggest developer

Evergrande is struggling under liabilities totalling an estimated US$300 billion. Two years ago, it defaulted on a bond repayment and it has since been grappling with a debt-restructuring plan.

But Justice Linda Chan told a Hong Kong court session on Monday that “enough is enough” and appointed Alvarez & Marsal as liquidator.

Chan said the appointment of a liquidator meant that it could take charge of a new restructuring plan for Evergrande at a time when its chairman, Hui Ka Yan, is under investigation for suspected crimes.

Evergrande’s lawyers argued that liquidation could harm the developer’s operations, which could hurt its ability to repay creditors, according to Reuters.

The company’s chief executive Siu Shawn told Chinese media that all home building projects would still be delivered despite the liquidation order.