Evergrande shares rise over 9% as court hearing to wind up property firm is postponed again

NANJING, CHINA – AUGUST 18, 2023 – Aerial picture reveals a residential space of Evergrande in Nanjing, East China’s Jiangsu province, Aug 18, 2023. (Photo by Costfoto/NurPhoto through Getty Images)

Getty Images

Shares of Evergrande Group rose over 9% as the beleaguered Chinese property firm’s court hearing over its doable liquidation was postponed to Jan. 29, 2024.

The firm was initially scheduled to face a Hong Kong court hearing on Monday over a petition from a creditor looking for to wind up the corporate.

Shares within the firm that was as soon as China’s largest personal sector developer by gross sales have plummeted nearly 85% up to now this yr.

Stock Chart IconStock chart icon

Justice Linda Chan from Hong Kong’s High Court had earlier pushed again the hearing from Oct. 30 to Dec. 4, whereas warning Evergrande to come up with a revised restructuring proposal earlier than the hearing date or else the corporate could possibly be wound up.

Top Shine, an investor in Evergrande unit Fangchebao, had filed a petition in June 2022 looking for to wind up the property firm.

A bunch of offshore collectors has been demanding controlling fairness stakes within the property developer and its two Hong Kong subsidiaries as a part of its revamped restructuring proposal, Bloomberg reported on Friday, citing sources with data of the matter.

Reuters had reported on Thursday that Evergrande’s new proposal provides collectors a 17.8% stake within the group, as well as to 30% stake in every of its Hong Kong items — Evergrande Property Services Group and Evergrande New Energy Vehicle Group.

The company, nevertheless, reported that collectors have been unlikely to settle for Evergrande’s new proposal, given low restoration prospects and rising issues about its future.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *