Pictured here on Sept. 7, 2023, are residential buildings under construction at the Tao Yuan Tian Jing project, developed by Evergrande in Yangzhou, China.
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Shares of embattled Chinese property Evergrande hit an all-time low of 18.8 Hong Kong cents (2.4 U.S. cents) after a Hong Kong judge delayed the court hearing to wind-up its business.
Evergrande’s shares plunged over 20% from last Friday’s close of 23.6 Hong Kong cents to the all-time low early Monday, before recovering slightly to 22.2 Hong Kong cents.
Reuters reported that Justice Linda Chan from Hong Kong’s High Court pushed back the hearing from Oct. 30 to Dec. 4, which would be the last before a decision is made on the winding up order.
Evergrande must come up with a revised restructuring proposal before that date, or the company will likely to be wound up, she said.
Back in June 2022, Top Shine, an investor in Evergrande unit Fangchebao, filed a winding-up petition against the property firm, according to filings from Hong Kong’s High Court, but in light of Evergrande’s restructuring, the petition was put on hold.
As such, Evergrande considered it necessary to re-assess the terms of the proposed restructuring “to meet the company’s objective situation and the demand of the creditors,” it said.
On top of all those challenges, Evergrande could not issue new notes under its debt restructuring plan, due to an investigation into subsidiary Hengda Real Estate in September.
Read More: Evergrande shares at all-time low as court adjourns winding-up