Comments by "HKim0072" (@HKim0072) on "Hong Kong court orders Chinese property developer Evergrande to liquidate | DW News" video.

@frankkobold Evergrande has been essentially bankrupt for 2 years. Any western company would have been in bankruptcy. Realistically, this is just the inevitable next step. Not much will come of it. The more important slice is the onshore debt. Evergrande owes to local investors / banks, but more importantly owes to local vendors and individual property owners. They haven't received payment for past services or condos haven't been turned over to individual buyers. The CCP will drag their feet on the onshore debt. I don't think it will get resolved for the next 5+ years. The CCP is stubbornly refusing to do a stimulus package and bailouts.
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@frankkobold Here's the way to look at it: Say, you want to build 2 houses. - 2 buyers give you the money upfront - contractor builds the first house and starts the 2nd house, but doesn't receive payment for the services - you use the buyers money for other things. No money left - Contractor is owed money. 1 buyer received house. 2nd buyer has unfinished house - The CCP would need to pay off the debt to the contractor AND spend more money to finish the incomplete house. My guesstimate is the CCP would need to inject at least $100B. They don't have that kind of cash to bailout just one company. Hence, they'll keep on stalling.
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@frankkobold No. It's a delightful mess. Many of the onshore assets (CCP China) have been seized or have liens on them with senior status by onshore creditors. HK courts will have a myriad of hurdles to even get the proper paperwork to know what they own and don't own in CCP China. Seizing the offshore assets which have little value or have been seized already is the easy part.
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lol, not actually the case. Evergrande is listed on the HK exchange. They are the parent company. But, you are partially correct. It relates to offshore debt. Not onshore.
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