2023-10-30 06:49:13
Shares of the Chinese company Evergrande on the Hong Kong Stock Exchange (HKEX) immediately fell by 22.89% and reached a minimum in its entire history at 0.182 Hong Kong dollars ($0.023 at current rates). Subsequently, the drawdown was completely bought out, but then the shares once more found themselves in the red zone. As of 09:11 Moscow time, the securities were trading at 0.219 Hong Kong dollars ($0.028), which is 7.21% lower than the closing level of the previous trading session.
The market is weighing news that the Hong Kong High Court has postponed the hearing of Evergrande’s liquidation petition from November 30 to December 4. Post this published on the developer’s page on the HKEX website itself. The initial backlash may have been caused by Judge Linda Chan’s warning that the next hearing would be the last before a winding up decision was made, meaning it would not be rescheduled any further. Chan said Evergrande must submit a specific updated restructuring plan by December 4, otherwise the company will likely be liquidated. transmits Archyde.com.
But bidders might ultimately take positive news that the world’s most indebted developer was given more time to finalize a plan to restructure its liabilities.
Evergrande had previously been working on a plan to restructure its $23 billion offshore debt, but that process was halted last month following news that Evergrande founder and chairman Hui Ka Yang located under police control in connection with an investigation into possible violations by the billionaire. Because of the investigation, the Evergrande unit was prohibited from issuing new dollar bonds, which was one of the most important conditions of the restructuring. Against this backdrop, a vote by Evergrande’s creditors on the restructuring plan, scheduled for the end of September, was cancelled.
Offshore bonds are bonds that are primarily traded in Hong Kong and are denominated in offshore Chinese Yuan (CNH). Offshore bonds also include securities denominated in other currencies, such as US dollars.
On Monday, October 30, Evergrande’s lawyer told the court that the developer intends to rework its restructuring plan by involving two of its divisions (Evergrande Property Services Group and Evergrande New Energy Vehicle Group), which are not subject to restrictions, in the deal. A lawyer representing Evergrande’s largest group of bondholders said they support postponing the liquidation meeting because the restructuring plan might provide creditors with a higher recovery rate than a liquidation scenario in which creditors would receive less than 3% of the funds.
“I don’t think anyone wants the company to go into liquidation. But right now we don’t see Evergrande offering a better option, so the likelihood that the company will eventually go into liquidation is still high,” said one of the developer’s bondholders.
1698652191
#Shares #Chinas #Evergrande #plummeted #record