CHINA Trends and Developments Contributed by: Lingyue Sun, Xiang Mao and Yi Wu, Merits & Tree Law Offices
sidiaries (including Evergrande Real Estate) as bankruptcy estate, nor should it dispose of the subsidiaries’ assets which are only indirectly held by the Company. If the administrator in the Mainland bankrupt - cy procedure (if any) intends to dispose of the assets of Evergrande Real Estate and its relevant project companies, it may liquidate the project companies respectively by resolutions of the shareholders’ meeting based on the sharehold - ing relationship. In addition, if the Company is the creditor of any project company, it may apply for the bankruptcy and liquidation of the relevant project company according to the rel - evant provisions of the Enterprise Bankruptcy Law of China, so as to dispose of the assets of the project company.
However, considering that the aforesaid Main - land bankruptcy procedure may take quite a long time and may bear pressures from the govern - ment, other shareholders of project companies, creditors, purchasers of pre-sold properties, etc, it may be quite difficult to implement in practice. Given the significance of the Evergrande winding-up case, it is important that the mar - ket keeps an eye on the liquidator’s follow-up moves, restructuring information (if any), and the comments of the relevant Mainland courts.
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