China Evergrande’s interim liquidator appointed by a Hong Kong court said, “The liquidation order will not directly affect other affiliates under the group, targeting only the parent company.”
According to Taiwan’s Central News Agency on the 30th, Tiffany Wong, executive director of Alvarez & Marsal, who was nominated by the Hong Kong High Court as a temporary liquidator of the Evergrande case the previous day, told Hong Kong media that the liquidation order does not directly affect the operation of other companies under the group because it was aimed at its parent company, China’s Evergrande Group.
“We will pursue a structured approach to preserve and return value to creditors and stakeholders,” Wong said, noting that “the priority is to maintain as much business as possible.”
We will consider all possible restructuring proposals, he said, adding, “We hope to cooperate with current management and come up with solutions.”
On the morning of the 29th, the Hong Kong High Court issued an order to liquidate Evergrande Group, which has a debt of $328 billion.
In the afternoon, Eddy Middleton and Tiffany Wong, executive directors of Alvarez & Marsal, were named temporary liquidators in the Evergrande case.
Alvarez & Marsal, founded in 1983, was responsible for the rehabilitation and liquidation of Lehman Brothers.
In addition, Wong once served as a creditor group manager who seized Evergrande Group’s assets in Hong Kong.
Meanwhile, Li Sugwang, a professor at China’s University, said, “The direct impact of the Hong Kong court’s liquidation order on Evergrande’s on domestic creditors’ rights is limited.”
“China Evergrande is the group’s offshore holding company, and all companies within the group are independent corporations,” Professor Li said, explaining, “The liquidation order will not directly affect the group’s regional work.”
He also added, “Unlike outside creditors, creditors in the region hold bonds of Evergrande Real Estate, and their rights are protected under China (mainland) related laws.”
