BEIJING, Aug 21 (Reuters) – A court in China’s Guangzhou has accepted the bankruptcy liquidation case of Hengda Real Estate Group, the mainland property unit of China Evergrande Group, according to a court statement on Friday.
The Guangzhou Intermediate People’s Court said the application for liquidation, submitted by the Guangzhou Rural Commercial Bank, was on the grounds that Hengda Real Estate was unable to repay debts and that its assets were insufficient to cover all of its liabilities.
The founder of China Evergrande Group, the world’s most-indebted property developer, was sentenced to life in prison on Thursday, five years after the firm’s collapse shook the nation’s economy and financial markets.
(Reporting by Liz Lee and Beijing newsroom; Editing by Tom Hogue)