Globo confirms bankruptcy of real estate giant
A mega company was declared bankrupt by the courts on the 29th and information was confirmed by Globe. This giant is known in the real estate sector and could not resist the decline after accumulating debts of R$1.4 trillion.
For those who don’t know, whenever a company is unable to pay its debts, the solution is to first file for judicial recovery. When this path doesn’t work, the solution is to file for bankruptcy.
And according to information from G1, Globo’s news portal, the Chinese real estate giant Evergrande Group had its bankruptcy filed by the Hong Kong court on the 29th. The crisis in the sector has been a topic around the world for some time now. and chaos in the Asian country.
According to the report, judge Linda Chan chose to liquidate the developer, which has more than US$300 billion (R$1.4 trillion reais) in total debt. As Evergrande was unable to offer a concrete restructuring plan, after more than two years after defaulting on its debt and after several court hearings, bankruptcy was the path chosen by the courts.
WHO IS THE CHINESE GIANT?
Founded in 1996, Evergrande has reached true heights in the real estate sector. The company signs construction projects in 280 cities, has a subsidiary in the electric vehicle market, a media company and even an amusement park. And its fall is chaos, due to its importance in the market.
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WHAT TO EXPECT NOW?
According to G1, the decision to accept the giant’s bankruptcy is just one step in a process that promises to be lengthy and involves political issues. It will now be analyzed whether Chinese courts will recognize Hong Kong’s decision. Additionally, international investors will focus on how Chinese authorities will treat foreign creditors when a company collapses. Therefore, the final outcome of this fall has many chapters ahead.