Court puts off Evergrande’s hearing on its debt restructuring to January

A Hong Kong court postponed until Jan. 29 a court hearing scheduled yesterday on troubled Chinese property developer Evergrande’s winding-up petition.

Evergrande is trying to win support from its creditors for a plan to restructure more than $300 billion in debt to stave off liquidation. The company’s lawyer told the court it was requesting an adjournment to “refine” its new debt restructuring plan.

The Hong Kong High Court has postponed the hearing over Evergrande’s potential liquidation several times.

Judge Linda Chan had said in October that Monday’s hearing would be the last before a decision is handed down.

Evergrande could be ordered to liquidate if creditors reject its plan.

The company, the world’s most indebted property developer, ran into trouble when Chinese regulators cracked down on excessive borrowing in the real estate sector.

Neil McDonald, a lawyer at Kirkland and Ellis which represents a group of creditors, described the adjournment as a “surprise.”

Yesterday, the company issued a statement refuting claims in a report by Hong Kong-based GMT Research that Evergrande was never profitable and had overstated its revenue for years.

Evergrande said GMT’s report was “without basis.” It said it would provide more clarification in due course.

Last month, the company said Chinese police were investigating Evergrande’s chairman, Hui Ka Yan, for unspecified suspected crimes in the latest obstacle to the company’s efforts to resolve its financial woes. MDT/AP