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Mint
7 days ago
- Business
- Mint
Evergrande's Debt Hits $45 Billion With Restructuring Ruled Out
(Bloomberg) -- China Evergrande Group's debt load is far bigger than earlier estimated, amounting to HK$350 billion ($45 billion) as any 'holistic' restructuring of the Chinese real estate firm is deemed out of reach, according to the developer's court-appointed liquidators. The company is facing 187 debt claims, with the total amount far exceeding the $27.5 billion of liabilities disclosed in its financial statement in December 2022, the liquidators said in a 'progress report' issued on Tuesday. The new figure isn't to be taken as final since additional claims could emerge and all are subject to formal review. Since liquidators Edward Middleton and Tiffany Wong, both of Alvarez & Marsal Inc., were appointed in January 2024, the duo have been sifting through files and unearthing arcane corporate structures to help creditors recoup money. That has included assuming control of more than 100 companies related to Evergrande that collectively hold a value of HK$27 billion, they said. 'The Liquidators are not at this time able to estimate the amounts that may ultimately be realised from these entities,' they said. It has been a monumental task as Evergrande comprises 3,000 legal entities in multiple jurisdictions, as well as about 1,300 projects under development in more than 280 cities, according to the liquidators. China Evergrande first defaulted in 2021, sending shock-waves through the nation's real estate market that is still seeking to recover. There were also 3,000 projects under the Hong Kong-listed property management operation Evergrande Property Services Group Ltd. Creditors are especially paying close attention to the handling of this arm, since it 'represents a very substantial potential source of value' and are being given 'the highest priority' in terms of attention, the liquidators said. Even though it's not statutory required, the liquidators decided to issue a progress report on Tuesday due to 'wide interest' of the liquidation process, they said. The liquidators said the realization of assets has so far been 'modest' at $255 million. Some $167 million has been 'upstreamed' and linked to Evergrande, however, stakeholders shouldn't assume that all of the money will be available to the company due to complex ownership structures, they said. Separately, China Evergrande New Energy Vehicle Group Ltd., whose unit is also facing a liquidation petition from a creditor, has been looking for strategic investors. The EV maker had goals to take on Tesla Inc. and once had a market value that topped Ford Motor Co. before being swept up in the developer's debt crisis. To date, liquidators have received no expressions of interest, after one previous proposal fell through. The liquidators also have to contend with complexities onshore. It has been challenging for offshore investors to get their hands on assets that sit in the mainland, which has a separate jurisdiction from Hong Kong. Last year, a mainland court accepted a liquidation application filed against one of Evergrande's major units onshore Guangzhou Kailong Real Estate Co. Kailong is fully owned by Evergrande and has a stake of around 60% in Hengda Real Estate, the developer's main property operation onshore. Last March, Chinese regulators accused Hengda Real Estate of inflating more than 560 billion yuan ($78 billion) of revenue by recognizing sales in advance, an alleged fraud that dwarfs that of Luckin Coffee Inc. and Enron Corp. Evergrande was fined 4.18 billion yuan, leaving even less money for offshore creditors. The liquidators said they have been made aware of hundreds of credit actions including the onshore bankruptcy proceedings of Guangzhou Kailong.
Qatar Tribune
12-08-2025
- Business
- Qatar Tribune
Evergrande to delist from Hong Kong exchange
Agencies Chinese embattled property giant Evergrande Group announced on Tuesday that it will delist from the Hong Kong Stock Exchange, following years of crisis. In a filing, the company said the stock exchange's listing committee had decided to cancel its China's most prominent real estate firm, Evergrande, defaulted in 2021 and has become emblematic of a years-long crisis in the country's property market that reverberated throughout the world's second-largest economy.A Hong Kong court issued a winding-up order for Evergrande in January 2024, ruling that the company had failed to propose a debt repayment plan that was acceptable to its shares on the Hong Kong stock exchange were suspended that month. Liquidators have made moves to recover creditors' investments, including filing a lawsuit against PwC and its mainland Chinese arm for their role in auditing the debt-ridden share listing will be cancelled on Aug. 25, according to Tuesday's filing, which was attributed to liquidators Edward Middleton and Tiffany Wong. Middleton and Wong said in an attached progress report that Evergrande's debt load was bigger than the previously estimated $27.5 billion. 'As at July 31, 2025, this claims' discovery exercise had resulted in 187 proofs of debt being submitted, by which claims of approximately HK$350 billion in aggregate have been made,' the document read.
RTHK
12-08-2025
- Business
- RTHK
Evergrande to delist from Hong Kong stock market
Evergrande to delist from Hong Kong stock market Evergrande says the city's stock exchange has decided to delist its shares per listing rules. File photo: AFP China Evergrande Group has announced its shares will be delisted from the Hong Kong Stock Exchange, as court-appointed liquidators warned of the real estate firm's debt load was far bigger than earlier estimated. In a filing on Tuesday, the company said the stock exchange has decided to cancel its listing from August 25 – as trading had not resumed by July 28 – and it would not apply for a review of the decision. "The last day of the listing of the shares will be on August 22, 2025 and the listing of the Shares will be cancelled with effect from 9am on August 25, 2025," the filing read. "All shareholders, investors and potential investors of the company should note that after the last listing date, whilst the share certificates of the shares will remain valid, the shares will not be listed on, and will not be tradeable on the stock exchange." Hong Kong's High Court issued a winding-up order for Evergrande in January 2024, ruling that the debt-laden company had failed to come up with a viable restructuring plan. Trading of its shares has since been suspended. In an attached progress report, liquidators Edward Middleton and Tiffany Wong said a "holistic" restructuring is out of reach. They also said Evergrande's debt load exceeded the US$27.5 billion of liabilities disclosed in its financial statement in December 2022. "As at July 31, 2025, this claims' discovery exercise had resulted in 187 proofs of debt being submitted, by which claims of approximately HK$350 billion (US$45 billion) in aggregate have been made," the document read. But the latest figure was not to be taken as final, the liquidators added.
Business Times
12-08-2025
- Business
- Business Times
China Evergrande liquidators say US$255 million of assets sold
[HONG KONG] Liquidators of China Evergrande Group said on Tuesday (Aug 12) they have sold about US$255 million of its assets 18 months into China's largest debt liquidation process and taken control of more than 100 of the company's subsidiaries. They have received creditor claims totalling US$45 billion, the liquidators said in a filing, significantly higher than liabilities of US$27.5 billion in 2022 in the last disclosure. The liquidation of the world's most indebted property developer has proved challenging as the majority of Evergrande's units and assets are onshore and many of them have been seized by creditors. Given the scale and complexity of the company, Evergrande's liquidation could take more than a decade to be completed, according to offshore investors. While the pace of asset disposals for debt recovery was faster than market expectations, the value was still far below the creditors' claims. The developer's shares will be delisted from the Hong Kong Stock Exchange on August 25 after they failed to resume trading per listing rules, the filing said. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Shares of Evergrande, once China's top developer which was listed in Hong Kong in 2009, are facing delisting after having been suspended from trading since January 29, 2024, the day the company received a liquidation order from the Hong Kong High Court. The liquidation order came after Evergrande failed to provide a viable restructuring plan for its US$23 billion offshore debt amid a debt crisis in the Chinese property sector that erupted in mid-2021. The company collapsed with more than US$300 billion in liabilities. Many property companies across the country have defaulted since, and China's property market, once a key growth driver for the world's second-largest economy, has been in a multi-year tailspin despite repeated government attempts to revive weak consumer demand. Developers face deteriorating cash flow but their bondholders are resisting taking heftier losses on their investments, delaying negotiations between companies and creditors, restructuring advisers have said. In a progress report published on Tuesday, Evergrande's liquidators, Alvarez & Marsal's Edward Middleton and Tiffany Wong, said entities now under the liquidators' direct management control had a total value of US$3.5 billion at the time of the liquidation order. Of the US$255 million worth of asset sales, however, only US$11 million came from assets held directly by Evergrande, while the rest were held by its subsidiaries. The liquidators cautioned it should also not be assumed that the US$244 million derived from assets held by Evergrande's units will all be available to it. Only US$167 million has been delivered so far. 'The ownership structures of these assets are in most cases multi-layered, involve corporate entities incorporated in more than one jurisdiction, have voluminous and complex intra-group transactions within them and, in some cases, have external creditors,' the liquidators added in the filing. 'All of this makes the upstream distribution of the proceeds of realisation of an asset a painstaking and time-consuming exercise.' The total proceeds raised include the sales of a variety of non-core assets, such as equity interests in the futures and securities brokerage businesses, school bonds, club memberships, artwork and motor vehicles. As of July 31, creditors had submitted 187 debt claims totalling US$45 billion, according to the filing. The figure compares to liabilities of US$27.5 billion disclosed in the company's last financial statements for 2022. The liquidators warned, though, that the figure could change and would be assessed to ensure duplicate or misleading claims had not been made. Evergrande's two most valuable assets are its shares in listed units Evergrande Property Services and Evergrande New Energy Vehicle, and the liquidators have been looking for buyers for them. For the property services unit, in particular, the liquidators said they have appointed legal and financial advisers to assist them in the process. As there is no clear path to a viable and more encompassing restructuring, the liquidators said they will continue to focus efforts on realising assets and investigating the causes of insolvency and possible claims arising from them. The liquidators have taken legal action against PricewaterhouseCoopers, accusing it of 'negligence' and 'misrepresentation' in its work for the group. They are also suing property services company CBRE and investment banking advisory firm Avista over valuation reports they produced for Evergrande and its subsidiaries in 2018. REUTERS
New Straits Times
12-08-2025
- Business
- New Straits Times
China Evergrande liquidators say US$255 million of assets have been sold
HONG KONG: Liquidators of China Evergrande Group said on Tuesday they have sold about US$255 million of its assets 18 months into China's largest debt liquidation process and taken control of more than 100 of the company's subsidiaries. They have received creditor claims totalling US$45 billion, the liquidators said in a filing, significantly higher than liabilities of US$27.5 billion in 2022 in the last disclosure. The liquidation of the world's most indebted property developer has proved challenging as the majority of Evergrande's units and assets are onshore and many of them have been seized by creditors. Given the scale and complexity of the company, Evergrande's liquidation could take more than a decade to be completed, according to offshore investors. While the pace of asset disposals for debt recovery was faster than market expectations, the value was still far below the creditors' claims. The developer's shares will be delisted from the Hong Kong Stock Exchange on August 25 after they failed to resume trading per listing rules, the filing said. Shares of Evergrande, once China's top developer which was listed in Hong Kong in 2009, are facing delisting after having been suspended from trading since Jan 29, 2024, the day the company received a liquidation order from the Hong Kong High Court. The liquidation order came after Evergrande failed to provide a viable restructuring plan for its US$23 billion offshore debt amid a debt crisis in the Chinese property sector that erupted in mid-2021. The company collapsed with more than US$300 billion in liabilities. Many property companies across the country have defaulted since, and China's property market, once a key growth driver for the world's second-largest economy, has been in a multi-year tailspin despite repeated government attempts to revive weak consumer demand. Developers face deteriorating cash flow but their bondholders are resisting taking heftier losses on their investments, delaying negotiations between companies and creditors, restructuring advisers have said. PROGRESS REPORT In a progress report published on Tuesday, Evergrande's liquidators, Alvarez & Marsal's Edward Middleton and Tiffany Wong, said entities now under the liquidators' direct management control had a total value of US$3.5 billion at the time of the liquidation order. Of the US$255 million worth of asset sales, however, only US$11 million came from assets held directly by Evergrande, while the rest were held by its subsidiaries. The liquidators cautioned it should also not be assumed that the US$244 million derived from assets held by Evergrande's units will all be available to it. Only US$167 million has been delivered so far. "The ownership structures of these assets are in most cases multi-layered, involve corporate entities incorporated in more than one jurisdiction, have voluminous and complex intra-group transactions within them and, in some cases, have external creditors," the liquidators added in the filing. "All of this makes the upstream distribution of the proceeds of realisation of an asset a painstaking and time-consuming exercise." The total proceeds raised include the sales of a variety of non-core assets, such as equity interests in the futures and securities brokerage businesses, school bonds, club memberships, artwork and motor vehicles. As of July 31, creditors had submitted 187 debt claims totalling US$45 billion, according to the filing. The figure compares to liabilities of US$27.5 billion disclosed in the company's last financial statements for 2022. The liquidators warned, though, that the figure could change and would be assessed to ensure duplicate or misleading claims had not been made. Evergrande's two most valuable assets are its shares in listed units Evergrande Property Services and Evergrande New Energy Vehicle, and the liquidators have been looking for buyers for them. For the property services unit, in particular, the liquidators said they have appointed legal and financial advisers to assist them in the process. As there is no clear path to a viable and more encompassing restructuring, the liquidators said they will continue to focus efforts on realising assets and investigating the causes of insolvency and possible claims arising from them. The liquidators have taken legal action against PricewaterhouseCoopers, accusing it of "negligence" and "misrepresentation" in its work for the group. They are also suing property services company CBRE and investment banking advisory firm Avista over valuation reports they produced for Evergrande and its subsidiaries in 2018.
