Evergrande shares to remain suspended as liquidators see no path to restructuring

Without a substantial new investment, the collapsed developer will not be able to resume trading amid its massive debt and other challenges

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China Evergrande’s Group’s shares have been suspended from trading since January 29. Photo: Reuters

Published: 6:29pm, 10 Aug 2024

Trading of China Evergrande Group’s shares will remain suspended, as the collapsed developer’s liquidators see no path to a restructuring owing to the firm’s massive debt and various business challenges.

“In the absence of substantial new investment into the company, the liquidators do not currently see a path to a restructuring that would enable the company to satisfy the resumption guidance and a resumption of trading in the shares,” the liquidators said in a filing on Friday to the Hong Kong stock exchange.

Evergrande’s shares have been suspended from trading since January 29, following the Hong Kong High Court’s order to liquidate the world’s most indebted developer, with liabilities exceeding US$300 billion. The company had failed to present a concrete restructuring plan more than two years after defaulting on its offshore debt.

The liquidators said they have made “modest realisations of assets” of Evergrande, but pointed out that the company’s “liquidity and other internal resources remain limited” amid its “level of indebtedness and the challenges faced by the group’s business and operations”.

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A vanishing fairyland dream: how China Evergrande rose, then crashed

The latest quarterly report of the liquidators show the continued depressing state of affairs at Evergrande, months after the China Securities Regulatory Commission slapped the firm with a 4.2 billion yuan (US$583.4 million) fine and barred founder Hui Ka-yan from the capital markets for life after the developer was found inflating its sales by 564 billion yuan in the years preceding its eventual collapse.