Evergrande's final judgment is here. The issuance of the winding-up order meant that Evergrande's negotiations with major creditors broke down completely. After more than two years of thunderstorms, I finally want to say "Evergrande, goodbye". Yesterday morning, the High Court of Hong Kong held a meeting on matters related to the liquidation of Evergrande. The court said that since Evergrande has not put forward a specific restructuring plan, it is enough to postpone the case to this day.
A winding-up order is an order issued by the court that requires the company to cease operations and sell all its assets, pay its debts in a certain order, and finally dissolve. It is equivalent to the bankruptcy liquidation process in the mainland. After the news came out, many of Evergrande's ** were suspended. Evergrande, which has been thundering for more than two years and has been liquidated for 19 months, is finally about to be completely dissolved.
Evergrande became the first real estate company to declare "bankruptcy", and the scale of debt is unmatched. Bankruptcy liquidation is a major blow to Evergrande's related parties. With a debt of 2 trillion yuan and a net worth of negative 600 billion, it is difficult to find a receiver. Therefore, from the beginning, the chances of success of Evergrande's debt restructuring were slim. Evergrande's liquidation has brought a huge "blow" to creditors, banks, and upstream and downstream businessmen.
However, it may be a "good thing" for people who have bought a house in Evergrande. At present, Evergrande has not yet delivered 677 projects, almost hundreds of thousands of suites. It may not be possible that Evergrande will liquidate the process of guaranteeing the delivery of the property after that, because the judicial interpretation issued by the Supreme Court before: "Under the corresponding conditions, the consumer of commercial housing claims that his right to claim for the delivery of the house and the right to claim the return of the price have priority over other creditor's rights to be repaid." In other words, the person who buys the Evergrande house has priority over other creditor's rights. However, the implementation is certainly not so smooth, and it depends on how various places cooperate. Moreover, it will take a long time from the winding-up order issued by the court to the actual liquidation and reorganization of Evergrande, ranging from 2 years to 4-5 years. But there is finally an explanation. It's better than waiting endlessly.