On the evening of January 29, China Evergrande (03333HK) issued an announcement confirming that the company was being liquidated by the Hong Kong Court today and introducing the appointment of liquidators. In interviews, both the liquidators and Evergrande stressed that the liquidation was only for China Evergrande and would not have a direct impact on the operation of the group's subsidiaries, and that the parties would retain the possibility of restructuring or continue to operate Evergrande's business as far as possible.
For shareholders, from 10:18 a.m. on January 29, China Evergrande's ** will enter a new round of suspension. Prior to this suspension, China Evergrande's total market capitalization was only HK$2.2 billion.
The liquidator will consider any possible restructuring.
According to the latest announcement issued by China Evergrande, on January 29, the Hong Kong High Court issued an order requiring China Evergrande to liquidate it. Edward Simon Middleton and Wing-Sze Wong, Ammann Consultants***, were appointed by the High Court as joint and several liquidators of the Company on the same day.
China Evergrande said it would make a separate announcement on any latest developments in the winding-up in accordance with the Listing Rules. China Evergrande reminds shareholders, investors and potential investors of the Company to exercise caution when trading the Company**.
It is worth noting that unlike the well-known China Evergrande announcement signed by "Xu Jiayin, Chairman of China Evergrande Group", or "Shaun, Executive Director of China Evergrande Group" that appeared after Xu Jiayin was taken compulsory measures, China Evergrande's signature on this announcement is "Edward Simon Middleton and Huang Yongshi", who officially represent China Evergrande, which will enter liquidation from today.
Winding-up is a common means of debt collection in the Hong Kong legal system, and the court issues a winding-up order, which declares the company to enter bankruptcy liquidation.
The news of China Evergrande's liquidation has been known to the market this morning, and the judge of the Hong Kong High Court pointed out that China Evergrande's debt restructuring plan lacked progress and the company was insolvent, and officially ordered China Evergrande to be liquidated. Before China Evergrande was suspended, the company's share price fell 2087%, with a total market capitalization of only HK$2.2 billion remaining. For more content, please see "Evergrande Burst! is about to face liquidation, and the three ** are all suspended
After being identified as the liquidator, Wong Wing-sze said in an interview with Hong Kong** that she would make every effort to guide Evergrande's business to continue to operate, and the first task was to retain the restructuring or continue to operate Evergrande's business as much as possible, and systematically retain the value of Evergrande, so as to increase the chances that creditors and other stakeholders can repay the loan. Within the framework of the winding-up proceedings, any feasible restructuring options will be considered.
Wong stressed that the winding-up order issued by the High Court is only against the parent company, China Evergrande Group, and will not have a direct impact on the operation of the group's subsidiaries, especially those operating in Chinese mainland.
It is reported that the liquidator will first meet with the company's management to understand the company's situation and discuss the next steps. Wong said she hopes to work with Evergrande's existing management to reach a solution that minimizes the further impact on all stakeholders.
Do everything possible to protect domestic business.
The winding-up order is only for the parent company to "retain the restructuring or continue to operate Evergrande's business as much as possible", and Wong's statement is consistent with Evergrande's.
Sean also said in an interview with 21 Finance today, "The subject involved in the overseas winding-up order issued by the court this time is China Evergrande (03333.), which is listed in Hong Konghk）。At present, the management and operation system of Evergrande Group and other domestic and foreign subsidiaries as independent legal entities remain unchanged, and the Group will continue to do everything possible to ensure the stability of domestic business and operation, and steadily promote key tasks such as ensuring the delivery of buildings. ”
Li Shuguang, a professor at China University of Political Science and Law, also believed in an interview with a reporter from the ** Times that China Evergrande was ordered to liquidate, which has a limited direct impact on the rights and interests of domestic bondholders.
Li Shuguang explained that on the one hand, China Evergrande is the top-level holding platform company of Evergrande Group overseas, and each company in the group is an independent legal entity, and the liquidation of China Evergrande does not mean that it will have a direct impact on the group's domestic business; On the other hand, the domestic bondholders are the creditors of Evergrande Real Estate, and the value of the interests of foreign shareholders has been substantially cleared, and the domestic creditors will enjoy the relevant assets of Evergrande Real Estate according to the amount of the creditor's rights in accordance with the law, and the bondholders can comply with the laws of the People's Republic of China
At present, at the ** level, China Evergrande (03333HK) has been suspended from 10:18 a.m. on January 29. As of press time, Evergrande Automobile (0708.HK) has not yet issued an announcement to introduce the follow-up arrangements, Evergrande Property (06666.HK) has announced that it will resume trading tomorrow (30 January).
Before this suspension, the traces left by China Evergrande to the ** market were: the stock price was 0HK$163 shares, with a total market capitalization of HK$2.2 billion. As a comparison, as of the end of November 2023, Evergrande Real Estate has accumulated about 3,163 outstanding debts due to debt$9.1 billion; The total number of overdue commercial bills is about 20553.7 billion yuan.
Editor-in-charge: Zhang Qianyao.
Proofreading: Zhu Tianting.