Troubled Chinese property developer Evergrande faces imminent liquidation after failing to reach a restructuring deal with its creditors, the Wall Street Journal reported Sunday night.
Talks between Evergrande
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and its creditors began last week with the hope of reaching a deal that would let the company continue to operate, according to the Journal, which cited sources familiar with the matter, but it now appears that creditors will support a petition to liquidate the company at a hearing Monday in Hong Kong.
Such a move could reverberate through China’s beleaguered real-estate industry, which has been hammered in recent years as developers have fallen behind on debt as the Chinese government cracked down on lending and property values fell.
Monday’s court hearing for Evergrande was originally scheduled for December, but was postponed to “refine” its debt-restructuring plan, the Associated Press reported last month.
Evergrande’s Hong Kong-traded stock has plunged about 90% over the past 12 months.
This story originally appeared on Marketwatch
