Evergrande Group, the Chinese conglomerate focused on real estate development, has been ordered liquidated by a Hong Kong bankruptcy judge. Once the world’s most valuable property development company, the judge determined that Evergrande’s $240 billion in assets were dwarfed by over $300 billion in debt the company couldn’t restructure.
BACKGROUND: Will the Bankruptcy of China’s Evergrande Group Set off a Chain Reaction to Financial Armageddon?
Evergrande is just the latest in a cascade of Chinese real estate development companies to collapse since the government cracked down on their ability to borrow money.
In this case, it looks like everyone thought Evergrande was “too bid to fail.” Using the old adage, “If you owe the bank $100, that’s your problem. If you owe the bank $100 million, that’s the bank’s problem,” as a business model, Evergrande made no effort to restructure its…
