(Bloomberg) — A mainland Chinese court accepted a liquidation application filed against a China Evergrande Group unit earlier this month, triggering a formal legal process that ratchets up the pressure on the defaulted developer to either restructure or face liquidation in its main base of operations under a worst-case scenario.
The Intermediate People’s Court of Guangzhou City, where Evergrande is based, accepted the application filed against Guangzhou Kailong Real Estate as of Aug. 9, according to a Hong Kong stock exchange filing late Monday. Kailong, fully owned by Evergrande, has a stake of around 60% in Hengda Real Estate, the developer’s main property operation onshore, a separate exchange filing showed.
The court will…
