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

Shares
of


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

The
firm
was
originally
scheduled
to
face
a
Hong
Kong
court
hearing
on
Monday
over
a
petition
from
a
creditor
seeking
to
wind
up
the
company.

Shares
in
the
firm
that
was
once
China’s
largest
private
sector
developer
by
sales
have
plummeted
almost
85%
so
far
this
year.

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

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

A
group
of
offshore
creditors
has
been
demanding
controlling
equity
stakes
in
the
property
developer
and
its
two
Hong
Kong
subsidiaries
as
part
of
its
revamped
restructuring
proposal,
Bloomberg
reported
on
Friday,
citing
sources
with
knowledge
of
the
matter.

Reuters
had
reported
on
Thursday
that
Evergrande’s
new
proposal
offers
creditors
a
17.8%
stake
in
the
group,
in
addition
to
30%
stake
in
each
of
its
Hong
Kong
units
—


Evergrande
Property
Services
Group
and


Evergrande
New
Energy
Vehicle
Group.

The
agency,
however,
reported
that
creditors
were unlikely to
accept
Evergrande’s
new
proposal,
given
low
recovery
prospects
and
growing
concerns
about
its
future.