China Evergrande Group is seeking an adjournment of its liquidation court hearing in Hong Kong, in a bid to resolve its financial troubles and avoid liquidation. The Chinese property developer is facing a debt crisis of around $300 billion and risks liquidation if its creditors veto its debt plan [Voanews]. The Hong Kong court granted an adjournment of the liquidation hearing until January 31, 2024, after China Evergrande sought more time to negotiate with its creditors and find a solution to its debt issues [Marketscreener].
The court ruling came after a judge urged China Evergrande to hold direct discussions with its creditors and explore the possibility of a debt restructuring or workout proposal [Marketscreener]. China Evergrande's lawyer assured the court that the company is actively engaged with its creditors and is working towards resolving its financial problems [Marketscreener].
An adjournment of the liquidation hearing provides China Evergrande with more time to negotiate with its creditors and come up with a debt restructuring plan [Marketscreener]. If the company fails to reach an agreement with its creditors, it risks being liquidated, which would have significant implications for the Chinese economy and the global financial markets [NY Post].
China Evergrande's debt crisis has been a cause for concern, as it is one of the world's most indebted property developers and its collapse could have a ripple effect throughout the Chinese economy [Marketwatch]. The company's financial troubles have already had an impact on its operations, with delays in construction and unfinished projects [Reuters].
The Chinese government has taken steps to contain the potential fallout from China Evergrande's debt crisis, including urging banks to support the company and its homebuyers, and encouraging local governments to step in and assist with debt repayment [NY Times]. However, the resolution of China Evergrande's debt problems remains uncertain, and the risk of liquidation persists if the company is unable to reach an agreement with its creditors [Dayton Daily News].
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