Evergrande Set for Liquidation as China Property Crisis Drags On
- Developer will end up in new management, judge says in order
- Trading in the stock halted after 21% tumble on Monday
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China Evergrande Group received a liquidation order from a Hong Kong court, setting off a daunting process to carve up the biggest casualty of a property crisis that’s upending the world’s second-largest economy.
The ruling on Monday from Hong Kong Judge Linda Chan is the latest twist in a saga that saw Evergrande amass more than $300 billion of liabilities during China’s debt-fueled property boom, before turning into the poster child of a market bust that shows few signs of ending. The builder was valued at just $275 million on Monday before trading in its shares was halted, down more than 99% from its peak.