By Clare Jim and Scott Murdoch
HONG KONG (Reuters) – A Hong Kong court on Monday ordered China Evergrande, the world’s most indebted developer, to be liquidated.
The move could send shockwaves through already fragile Chinese capital and property markets. Such a process could be complicated, with potential political considerations, given the many authorities involved.
WHAT HAPPENS AFTER THE COURT ORDERS EVERGRANDE LIQUIDATED?
Once a liquidation order is issued, a provisional liquidatorand then an official liquidator will be appointed to takecontrol and prepare to sell the developer’s assets to repay itsdebts.
The liquidators could propose a new debt restructuring planto offshore creditors holding $23 billion of debt in Evergrandeif they determine the company had enough assets or if a whiteknight investor appeared. They would also investigate thecompany’s affairs and could refer any…
