Hong Kong Court delays China Evergrande liquidation hearing to January

The liquidation petition against China Evergrande Group underwent a court hearing in a Hong Kong court, and a decision was made to adjourn the proceedings to the next month. This unexpected move provided additional time for the embattled developer to finalise a debt restructuring proposal, bringing significant relief. The court announced that the hearing would resume on January 29, following a request for an adjournment from Evergrande's lawyers. They stated that no creditors were actively seeking liquidation. Previously, on October 29, Hong Kong High Court Justice Linda Chan, while adjourning the hearing, had mentioned that the next hearing would be the final one before deciding on liquidating Evergrande. Following the adjournment order, Evergrande's shares rebounded, reversing earlier losses and surging more than 13%. Evergrande, known as the world's most indebted property developer with over $ 300 billion in total liabilities, defaulted on its offshore debt in late 2021, becoming a symbol of the debt crisis that has affected China's property sector. In a bid to avoid a potential liquidation order, Evergrande worked fervently last week to assemble a revised restructuring plan.