Hong Kong court orders liquidation of China's Evergrande

A Hong Kong court ordered the liquidation of battered Chinese property giant Evergrande, dealing another blow to the firm that has become the symbol of a property crisis

A Hong Kong court on January 29 ordered the liquidation of battered Chinese property giant Evergrande, dealing another blow to the firm that has become the symbol of a property crisis that has sent shivers through the economy.

High Court judge Linda Chan's decision effectively kickstarts a long process which includes liquidating the developer's assets and replacing its management to assuage concerns of its creditors.

Also read: Explained | How bad is China’s property crisis and how did it get here? 

The move against what was once China's biggest developer comes as it wallows under more than $300 billion in liabilities, one of several firms hammered by a years-long government clampdown on the sector.

A creditor, Top Shine Global, filed the winding-up petition in Hong Kong against China Evergrande Group in 2022 and the case has dragged on while parties tried to broker a deal.

But on Monday, Ms. Chan said "enough is enough".

"[Given] the obvious lack of the progress on the part of the company in putting forward a viable restructuring proposal and the insolvency of the company... I consider that it is appropriate for the court to make a winding up order against the company and I so order," judge Linda Chan said.