Source: Sharecast
The High Court of Hong Kong put Evergrande into liquidation in January 2024 on the basis that the property firm did not have a reasonable restructuring plan for its debts, which totalled more than $300bn, following a collapse of China's mainland property sector.
Since then, liquidators have been working on a variety of options, including a possible restructuring, selling off of assets and engaging with creditors.
Evergrande announced late on Tuesday that it has now received a letter from the stock exchange that it has decided to cancel the company's listing. Under Hong Kong's listing rules, shares may be delisted if a suspension continues for more than 18 months.
A statement from Evergrande confirmed that a full restructuring of the company "will prove out of reach", and liquidators are continuing to focus efforts on realising assets and investing the causes of insolvency going forward.
"The Liquidators will continue their structured approach to preserving value and realising assets from the Group for the ultimate benefit of the Company’s creditors. This work will include the Liquidators continuing to progress various ongoing legal actions in pursuit of high-value potential recoveries," the liquidators report said.
The last day of the listing of the shares will be 22 August, Evergrande confirmed on Wednesday.
