Chinese authorities are moving to finish cleaning up the mess left by the collapse of the Evergrande real estate empire, years after its default with some $300 billion in liabilities.
A court in southern China’s Guangzhou said Friday it had accepted a bankruptcy liquidation case against Evergrande’s mainland Chinese property development unit, which according to industry data accounted for much of the group’s overall debt.
That came a day after a court in the city of Shenzhen sentenced China Evergrande’s 67-year-old founder Hui Kan Yan to life in prison for financial crimes. On the same day, dozens of others tied to the group, including Hui’s sons, also were sentenced to prison terms of up to 18 years.
China takes steps to wrap up the Evergrande saga
The latest developments suggest that the Chinese government “may already have a road map” for wrapping up the Evergrande saga, said Foreky Wong, a founding partner at Fortune Ark Restructuring and a restructuring specialist.
