GUANGZHOU, Aug. 21 (Xinhua) -- A court in south China's Guangdong Province has accepted a bankruptcy liquidation application against Chinese real estate developer Evergrande Real Estate Group, the court said Friday.
The Guangzhou Intermediate People's Court said the Huaxia sub-branch of Guangzhou Rural Commercial Bank Co., Ltd. filed the application on the grounds that Evergrande Real Estate Group was unable to repay debts as they fell due and that its assets were insufficient to cover all its liabilities.
After review, the court found that the application met the conditions stipulated in China's Enterprise Bankruptcy Law and ruled on Friday to accept the case.
The development came a day after the Shenzhen Intermediate People's Court sentenced Xu Jiayin, former boss of Evergrande Group, to life in prison after finding Evergrande Group and Xu guilty of illegally absorbing public deposits, fundraising fraud, illegally issuing loans, fraudulent issuance of securities, unlawful disclosure of important information, and corporate bribery.
Evergrande Real Estate Group was also convicted of fraudulent issuance of securities and fined 7 billion yuan (about 1.03 billion U.S. dollars).
According to the Shenzhen court, between 2016 and 2021, Evergrande Group, Evergrande Real Estate Group and Xu inflated assets and concealed liabilities through sustained, large-scale financial fraud and other means. ■
