THE real estate company Evergrande shall be placed in liquidation as ordered court of Hong Kongas he did not present a convincing plan restructuring within the specified deadline.

THE Evergrande is the world’s most over-indebted real estate developer with liabilities of about $300 billion.

The company failed to convince the court that it has a viable restructuring plan, having been granted seven extensions since legal proceedings were first launched in June 2022. However, it can still appeal.

Given “the apparent lack of progress on the part of the company in presenting a viable restructuring plan, I consider it appropriate for the court to proceed with the issuance of a decision for the liquidation of the company, and this is what I order,” said the Judge Linda Chan.

THE Evergrande was working on a $23 billion debt restructuring plan, but that collapsed in September when the company announced that its founder, the billionaire Hui Ka Yanwas under investigation for “suspected illegal crimes”.

It is noted that he had made headlines for his lavish lifestyle before it was announced last year that he was under investigation for suspected crimes.

According to the BBC, Chinese property buyers have limited options to seek compensation, but many have taken to social media to express their frustration with developers such as Evergrande.

Major investors have turned to the courts, including in Hong Kong. The case that resulted in Monday’s decision was brought in June 2022 by Hong Kong-based Top Shine Global, which said Evergrande failed to honor a share buyback agreement.

According to the BBC, even if its orders Linda Chan are not enforced in China, the decision sends a strong message and gives an idea of ​​what other developers and creditors may face.

Judge Linda Chan is presiding over – not only Evergrande’s case – but also other defaulting developers such as Sunac China, Jiayuan and Kaisa.

Last May, the judge also ordered her liquidation Jiayuan after her lawyers failed to explain why they needed more time to complete their debt restructuring proposal.