Chinese real estate giant Evergrande was issued a winding-up order on Monday after failing to convince the High Court that it had a working restructuring plan.

"[Considering] the obvious lack of the progress on the part of the company in putting forward a viable restructuring proposal... I consider that it is appropriate for the court to make a winding-up order against the company and I so order," judge Linda Chan said.

In response to the ruling, Evergrande's executive director, Shawn Siu, said the decision was "regrettable".

"Today's court ruling is contrary to our original intention." Siu told the business daily 21st Century Business Herald.

He added: "We can only say that we have tried our best and it's very regrettable."

Evergrande shares plunged just over 20 percent to HK$0.163 before it was suspended in morning trade.

The liquidation process could be complicated given the many authorities involved.

But it is expected to have little impact on the company's operations including home construction projects in the near term, as it could take months or years for the offshore liquidator appointed by the creditors to take control of subsidiaries across the mainland.

The proceedings had been adjourned multiple times and Justice Chan had said previously the December hearing would be the last before a decision was made whether to liquidate Evergrande in the absence of a "concrete" restructuring plan.

Before Monday, at least three Chinese developers have been ordered by a Hong Kong court to liquidate since the current debt crisis unfolded in mid-2021. (AFP/Reuters)
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Last updated: 2024-01-29 HKT 12:59