Hong Kong Bankruptcy Court Orders Chinese Property Giant Evergrande LIQUIDATED + MY COMMENT
China's 2nd largest Real Estate Developer, EVERGRANDE, has been ordered forcibly liquidated by a Hong Kong Bankruptcy Court. This will likely trigger a CRASH and affect Global Markets like COVID-19 - maybe worse.
Evergrande still owes nearly $340 billion to creditors.
What is going to follow will be worth a huge bucket of Popcorn!STEP 1 - Immediate Actions
1: The court appoints an official liquidator who takes control of the company.
2: Trading on Evergrande (3333.HK) stocks will be suspended again.
3: Evergrande bank accounts will be immediately frozen.STEP 2 - Liquidation Process
1: The official liquidator will be required to certify all assets and liabilities of Evergrande.
2: Creditors will then submit their claims and they will be ranked based on their legal status. So far, 2 types of creditors have been identified, those belonging to Class A (senior dollar notes, Hong Kong dollar-denominated convertible bonds and one private loan) and those belonging to Class C (private loans, repurchase obligations and guarantees provided by the company).
3: The company liquidator then starts to sell all assets in an orderly manner and through all possible means available to maximize their value.
4: Employees of the company will all be terminated and their salaries and severances will have the highest repayment priority in the liquidation process.
5: Once all debts are settled and assets liquidated, the company is formally dissolved and removed from the Companies Register.
Personally speaking, now that the court ruled in favor of a liquidation, the effects of $300bn+ of debt going officially "POOF" will surely leave a bad scar on many banks' loan books across the world.https://halturnerradioshow.com/index.php/en/news-page/world/boom-china-court-orders-property-giant-evergrande-liquidated