Hong Kong’s High Court approved on Monday an application by China Evergrande Group and its major offshore credit group to adjourn a winding-up petition against it to November 7, reports Reuters.
An investor in Evergrande’s unit online real estate and automobile marketplace, Fangchebao (FCB), filed the petition in Hong Kong in June because the developer had not honoured an agreement worth $110 million to repurchase shares the investor bought in FCB. It is the first winding-up petition known to have been filed against Evergrande, which is reeling under more than $300 billion in liabilities.
If the petition is successful, it could affect Evergrande’s debt restructuring plan by diminishing the value of its overseas assets that are central to the interests of offshore creditors.
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