Guangzhou Intermediate People's Court Accepts Bankruptcy Liquidation Case of Evergrande Real Estate

Huaxia Branch of Guangzhou Rural Commercial Bank Co., Ltd. filed a petition with the court for bankruptcy liquidation of Evergrande Real Estate, citing its inability to repay maturing debts and insufficient assets to settle all liabilities.

After review, the Guangzhou Intermediate People's Court of Guangdong Province determined that the petition met the requirements stipulated in Article 2, Paragraph 1 of the 'Enterprise Bankruptcy Law of the People's Republic of China,' and ruled on Friday the 21st to accept the bankruptcy liquidation petition filed by Guangzhou Rural Commercial Bank Co., Ltd. Huaxia Branch against Evergrande Real Estate.

Meanwhile, on the 20th, the Shenzhen Intermediate People's Court of Guangdong Province, China, delivered a first-instance public verdict in the case involving defendant entities Evergrande Group and Evergrande Real Estate, as well as defendant Xu Jiayin.

The court imposed cumulative fines totaling 8.82 billion RMB on Evergrande Group, and a fine of 7 billion RMB on Evergrande Real Estate. Xu Jiayin was sentenced to life imprisonment, deprived of political rights for life, and had all personal property confiscated. Illegal gains will continue to be recovered, with any shortfall to be compensated or returned.