A Hong Kong court has issued the liquidation of battered Chinese property giant Evergrande after lawyers failed to convince a judge it had a working restructuring plan.
Once China's biggest developer, Evergrande has reported more than US$300 billion ($456 billion) in liabilities and its troubles have become a symbol of a years-long property crisis that has dealt a massive blow to the country's economy.
A creditor in 2022 filed a winding-up petition in Hong Kong against China Evergrande Group — which would begin the process of liquidation — but the case has dragged on while parties tried to broker a deal.
High Court judge Linda Chan on Monday called for the liquidation of the firm given "the obvious lack of the progress on the part of the company in putting forward a viable restructuring proposal and the insolvency of the company".
Evergrande has reported more than US$300 billion ($456 billion) in liabilities and its troubles have become a symbol of a years-long property crisis that has dealt a massive blow to the country's economy. Source: AAP, AP / Andy Wong
"There has been a history of last-minute engagement which has gone nowhere," said lawyer Fergus Saurin.
"The company has itself to blame for being wound up."
The demise of Evergrande, which first defaulted on a debt payment in 2021 and declared bankruptcy in the United States this year, has been closely watched as it was once a pillar of China's economy.
China's construction and property sector once accounted for around a quarter of its GDP.
But Chinese President Xi Jinping deemed the debt accrued by Evergrande and other property firms an unacceptable risk for China's financial system and overall economic health.
How Evergrande's debt crisis unfolded
August 2021
Many Evergrande projects across the country halt construction due to overdue payments.
China's central bank and banking watchdog summon senior executives and issue a rare warning that Evergrande must reduce its debt risks and prioritise stability.
September 2021
It misses two offshore bond coupon payments totalling US$131 million ($199 million). The payments have a grace period of 30 days.
Evergrande engages financial advisers to examine options, warning of cross-default risks amid plunging property sales.
November 2021
Founder Hui Ka Yan sells 1.2 billion shares worth HK$2.68 billion ($520 million), lowering his stake in Evergrande to 67.9 per cent from 77 per cent.
March 2022
Evergrande suspends trading in its shares, citing its inability to publish audited results before 31 March, and an investigation of the property management arm in which 13.4 billion yuan of deposits were seized by banks.
Chinese President Xi Jinping deemed the debt accrued by Evergrande and other property firms an unacceptable risk for China's financial system and overall economic health. Source: AAP
A mansion belonging to Evergrande's chairman in Hong Kong's prestigious The Peak residential enclave is seized by lender China Construction Bank (Asia).
December 2022
Evergrande says it has resumed work on 631 pre-sold and undelivered projects.
January 2023
Evergrande says its then auditor PricewaterhouseCoopers resigned amid disagreements over matters relating to the audit of its 2021 accounts.
February 2023
An independent committee finds Evergrande's directors fell "below standards" through their involvement in diverting loans secured by unit Evergrande Property Services to the group.
March 2023
Evergrande announces plans for the restructuring of its offshore debt, giving creditors a basket of options to swap their debt into new bonds and equity-linked instruments backed by the group and its two Hong Kong-listed companies.
April 2023
Evergrande says 77 per cent of the holders of class-A debts and 30 per cent of the holders of class-C debts have submitted their support for the restructuring proposal.
July 2023
Evergrande posts a net loss of 476 billion yuan ($100 billion) and 105.9 billion yuan ($22 billion) for 2021 and 2022, respectively, versus a net profit of 8.1 billion yuan ($1.7 billion) in 2020 when its operation was normal.
August 2023
Evergrande says it plans to seek protection under Chapter 15 of the United States bankruptcy code, which shields non-US companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the U.S.
Evergrande reports a 33 billion yuan loss in January-June, versus a 66.4 billion yuan loss in the same period last year.
Trading in Evergrande's shares resumes after 17 months, with 79 per cent of its market value lost from when it was last traded.
China's construction and property sector once accounted for around a quarter of its GDP. Source: AAP, SIPA USA / Costfoto
China's National Administration of Financial Regulation approves the setup of a state-owned insurer to take over all of asset and liabilities of Evergrande Life Insurance, a 50 per cent-owned investee company of Evergrande.
Police in southern China say they have some staff at Evergrande Financial Wealth Management, an indirect wholly-owned subsidiary of Evergrande.
Evergrande defers scheme meeting initially scheduled on 25 and 26 September, citing needs to reassess the terms of proposed restructuring.
Evergrande says it is unable to meet qualifications for the issuance of new notes as its flagship onshore unit Hengda Real Estate Group was being probed by the Chinese securities regulator for suspected violation of information disclosure.
Evergrande says its founder is being investigated over suspected "illegal crimes".
October 2023
The Hong Kong High Court gives Evergrande a five week reprieve to come up deal with creditors, but says the next hearing in December will be the last before a decision is made on liquidating the company.
November 2023
Evergrande makes last-minute revised debt restructuring proposal to offshore creditors ahead of the hearing, seeking to avert a potentially imminent liquidation.
December 2023
Evergrande surprisingly obtained another adjournment from the Hong Kong court, giving the developer more time to finalise a revamped offshore debt-restructuring plan.
Evergrande's ad hoc bondholder group says it firmly opposes the revised restructuring terms.
January 2024
Evergrande's new energy vehicle unit Group says its vice chairman Liu Yongzhuo has been detained and is under criminal investigation.
Evergrande's ad hoc bondholder group joins the liquidation petition against the developer.
Evergrande was issued a liquidation order by a Hong Kong court at a 29 January hearing.
