On January 29, the Hong Kong High Court officially ordered the liquidation of China Evergrande, in other words, Evergrande can be liquidated in bankruptcy The Hong Kong court issued a winding-up order for China Evergrande
Domestic Evergrande must speed up the process of asset realization and cooperative auctions, otherwise it will face huge difficulties. Last week, Evergrande transferred a cooperative property in Shantou to a partner to repay more than 300 million yuan of debt, and successfully recovered more than 100 million yuan of debt. This means that the creditor ends up paying the debt at a 5% discount, which is already a pretty good result. If the project sells well in the future, it is even possible to recover the investment of 300 million yuan in full.
This is undoubtedly an enviable good fortune for other debtors. Therefore, it was suggested that other domestic cooperation projects should resolve the negotiation issues as soon as possible, as the time window could be closing rapidly. As the situation now comes, every week can be a decisive moment, so it is imperative to seize the time to act. 
Just now, Sean, CEO of Evergrande Group, responded to China Evergrande's liquidation order, saying that we can only say that we have done our best and are very sorry. "Objectively, the group's operation is facing huge difficulties, resources are extremely limited, and the preliminary voting of creditors has not met expectations, and Evergrande Real Estate has been investigated by the China Securities Regulatory Commission, and the actual controller of the group has been taken compulsory measures in accordance with the law for suspected violations and crimes, and the company also believes that it cannot meet the relevant legal conditions for the key links of overseas debt restructuring.
We will actively communicate with the liquidators, cooperate with the liquidators to perform relevant procedures in accordance with the law, promote debt resolution and other work in accordance with international practices and market rules, and steadily promote key tasks such as ensuring the delivery of buildings.
This also means that 100% of Evergrande will be liquidated.
As soon as the Hong Kong court winding-up order is issued, what will happen to Evergrande:
1. Once the voluntary winding-up process is commenced, the company must cease all business operations, except for those that facilitate the winding-up.
2. All responsibilities, rights and powers of the Board of Directors will cease.
3. After the winding-up order is made, the person who has been provisional liquidator or the Official Receiver becomes the provisional liquidator of the company and is required to take over the company.
4. The provisional liquidator will collect and sell all the assets of the company in order to obtain the maximum repayment of the debts to the creditors.
This means that Evergrande itself has completely lost control of Evergrande Real Estate. (I can still respond now, but it won't be Evergrande's turn to speak in the future).
At the same time, business activities in various places have also pressed the pause button, and the relevant business negotiations in the mainland have also come to an end. The future business development will focus on assets** and debt repayment.
Evergrande is saddled with 2The 4 trillion debt has long become the focus of global attention. Last year, overseas creditors calculated a detailed account, and if Evergrande went bankrupt, the estimated ** rate of overseas unsecured creditors was only about 972.8 billion yuan, of which the ** rate of various creditors is even more staggeringly low. The average ** rate of overseas creditors is not even 10%. It is not difficult to see from the announcement after the listing of Evergrande that the debt is as high as 24 trillion, while the cash and cash equivalents in the account are only 433.4 billion, and 1100 million properties under development. For Shantou creditors to be able to achieve 50% of the **, it is a great luck; It is rare for most creditors, especially Class C creditors, to recover 5% of their funds after the liquidation of their assets. After all, the biggest problem facing Evergrande at present is to ensure the delivery of buildings, which is far more urgent than solving the debt problem. In this context, the fate of Evergrande is not only related to the survival of the company itself, but also tugs at the heartstrings of countless creditors and home buyers. 
It is conceivable that after all the assets of Evergrande are sold, the first task is to ensure the delivery of the sold projects. This point was also emphasized by the CEO in his response. This is not only about people's livelihood, but also about the loan security of many financial institutions. Only then did it take the turn of the relevant senior creditors. If this is the case, creditors may have no choice but to give up. Currently, even if all of these assets are **, there is no guarantee of 100% delivery. Evergrande's fate is already doomed, and if this cancer is not removed, China's real estate will be burdened with heavy sins. With Xu Jiayin and other executives in prison, they will inevitably face severe punishment by the law. The wealth of countless people has been wiped out in this reckoning. Not to mention that this is an unfair suppression of enterprises. The two crimes of illegal fundraising by Evergrande and illegal misappropriation of funds raised by Evergrande Property are sufficient to determine serious crimes. In this troubled era, only severe punishment can serve as a warning ......
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