China Evergrande says hiring more advisers to help deal with debt
One AmericaNov 22, 2021
The Facts
The Hong Kong High Court gave the crisis-hit China Evergrande Group a five-week reprieve to negotiate a deal with creditors or face liquidation, adjourning a liquidation hearing until Dec. 4. This comes after the property developer announced Monday that it has been working on a revised debt restructuring plan.
Justice Linda Chan stated that this postponement, the fifth since offshore creditor Top Shine Global filed a winding-up petition against the company in June 2022, will be the last before a decision is made on the liquidation order.
The Spin
Anti-China narrative
Doubts remain over the future of the highly indebted Chinese property developer as fears of its liquidation grow. With Hui's freedoms limited and a five-week window to strike a deal, the company may not survive. A failed Evergrande could spill over into other parts of the economy, leading to China's own Lehman-style crisis.
Pro-China narrative
While Western media keeps trying to promote Evergrande's case as if its potential collapse would negatively affect China's economic prospects, the fact is that such claims expose just how little they understand the Chinese development model. Because Evergrande has engendered this crisis by not following Beijing's directions, the group must shoulder its responsibility without a bailout.