Court accepts liquidation petition against Evergrande unit Hengda Real Estate
The Guangzhou Intermediate People's Court accepted a bankruptcy liquidation petition brought by Guangzhou Rural Commercial Bank's Huaxia branch after finding Hengda Real Estate unable to pay mature debts and with insufficient total assets, effectively closing the onshore chapter of China Evergrande Group. Separate rulings in Shenzhen included convictions of Hui on multiple financial charges, forfeiture of personal property, and administrative fines totalling 8.82 billion yuan on the parent and 7 billion yuan on Evergrande Real Estate, along with orders to recover illegal gains; the sequence underscores Beijing's determination to end the firm's debt crisis that began in 2021.
Guangzhou court ordered liquidation of Hengda Real Estate for unpaid debts
Context
Evergrande fell into crisis in 2021 after breaching Beijing's 'three red lines' rules. A bank petition met legal criteria and courts moved to liquidate and fine the group. Legal wind-down and asset recovery are likely next steps.
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