Liquidation hearing for China's debt-ridden real estate giant Evergrande postponed

China Evergrande Group has gained breathing room to reach a restructuring agreement with creditors after a Hong Kong court once again postponed its decision on whether to liquidate the world's most indebted property developer.

The court announced that the hearing has been adjourned until January 29. The unexpected postponement came after the initial petitioner did not push for immediate liquidation on Monday, marking the latest development in a case that has been ongoing for over a year.

The company has eight weeks to reach an agreement with offshore bondholders for what would be one of the largest restructurings in the country's history. Evergrande's lawyer stated on Monday that a new proposal was submitted on November 26 and that the firm requested another postponement as it hopes to receive more support and feedback from creditors.

Neil McDonald, a partner at the law firm Kirkland & Ellis LLP, which serves as legal counsel for the creditor group, said in an interview outside the court, "The petitioner changed their position and did not force the company into liquidation, which was a surprise to us."

Meanwhile, he added that the creditor group has "firmly rejected" the latest proposal Evergrande submitted to the court.

News Source: 12punto