The lingering Evergrande crisis of over two years may be reaching a tipping point with the world’s most indebted property developer averting a potentially imminent liquidation with a last-minute adjournment of a court hearing to January, giving the property developer time to finalize a revamped debt restructuring proposal.
But even as a deadline relaxes, a restructuring appears unachievable from an accounting standpoint, while liquidation appears imminent, say analysts.
They also add that Evergrande never made profits through its year of inception, and its primary purpose became raising finance to fund its inflating balance sheet and keep the party going.
“[Evergrande’s] problems have built up over a number of years, and the developer has been inflating revenue and profits for years. Consequently, it has an accumulated a loss of close to a trillion yuan. With its huge losses, liabilities exceeding its assets by a very wide margin, and the fact that its creditors will unlikely waive its liabilities, a restructuring is extremely difficult and looks almost impossible,” Nigel Stevenson, an analyst at Hong Kong-based GMT Research told The Epoch Times….
If Evergrande Liquidates, What Next?
#news24h
Hot News
National
- June 1, 2024 | 0 Comments
Elderly couple attacked by bear in their home in Gunma Prefecture
- June 1, 2024 | 0 Comments
Barrier at viral Mount Fuji photo spot to be replaced after holes found
- May 18, 2024 | 0 Comments
Yokohama City Fire Department Apologizes for Ambulance Delay Leading to Patient’s Death
- May 18, 2024 | 0 Comments
Japan Passes Ground-Breaking Law Allowing Joint Child Custody for Divorced Parents
Business
- June 1, 2024 | 0 Comments
Closing Prices for Crude Oil, Gold, and Other Commodities (May 31)
- June 1, 2024 | 0 Comments
OpenAI Disrupts Influence Operations Linked to China, Russia, and Others
Politics
- June 2, 2024 | 0 Comments
Biden, Trump Test Executive Privilege With Claims
- June 1, 2024 | 0 Comments
Louisiana Bill Authorizing Physical Castration for Sex Offenders Heads to Governor’s Desk
- June 1, 2024 | 0 Comments
Trump and RNC Launch Grassroots Voter Outreach Effort Citing ‘Rigged Biden Trial’
- June 1, 2024 | 0 Comments
Trump May Not Be Able to Vote for Himself Amid Conviction
Crime
- June 1, 2024 | 0 Comments
Man Sentenced to 47 Years to Life for Kidnapping 9-Year-Old Girl From Upstate New York Park
- June 1, 2024 | 0 Comments
Man Who Set Himself on Fire Outside Trump Trial Courthouse Identified, in Critical Condition
- June 1, 2024 | 0 Comments
Suspected Cache of Rocket Launchers, Handguns, Hand Grenades Found near Kitakyushu River