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Hong Kong court orders China's Evergrande, which owes $300 billion, to liquidate
Legal Line News |
2024/01/30 10:57
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A Hong Kong court ordered China Evergrande, the world’s most heavily indebted real estate developer, to undergo liquidation following a failed effort to restructure $300 billion owed to banks and bondholders that fueled fears about China’s rising debt burden.
“It would be a situation where the court says enough is enough,” Judge Linda Chan said Monday. She said it was appropriate for the court to order Evergrande to wind up its business given a “lack of progress on the part of the company putting forward a viable restructuring proposal” as well as Evergrande’s insolvency.
China Evergrande Group is among dozens of Chinese developers that have collapsed since 2020 under official pressure to rein in surging debt the ruling Communist Party views as a threat to China’s slowing economic growth. But the crackdown on excess borrowing tipped the property industry into crisis, dragging on the economy and rattling financial systems in and outside China.
Chinese regulators have said the risks of global shockwaves from Evergrande’s failure can be contained. The court documents seen Monday showed Evergrande owes about $25.4 billion to foreign creditors. Its total assets of about $240 billion are dwarfed by its total liabilities.
“It is indisputable that the company is grossly insolvent and is unable to pay its debts,” the documents say.
About 90% of Evergrande’s business is in mainland China. Its chairman, Hui Ka Yan, who is also known as Xu Jiayin, was detained by authorities for suspected “illegal crimes” in late September, further complicating the company’s efforts to recover.
It’s unclear how the liquidation order will affect China’s financial system or Evergrande’s operations as it struggles to deliver housing that has been paid for but not yet handed over to families that put their life savings into such investments.
Evergrande’s Hong Kong-traded shares plunged nearly 21% early Monday before they were suspended from trading. But Hong Kong’s benchmark Hang Seng index was up 0.9% and some property developers saw gains in their share prices. |
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Hong Kong activist publisher Lai pleads not guilty to sedition charges
Legal Line News |
2024/01/02 09:59
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Prominent activist and publisher Jimmy Lai on Tuesday pleaded not guilty to three charges of sedition and collusion with foreign countries in a landmark national security trial in Hong Kong.
Lai was arrested during a crackdown on dissidents following huge pro-democracy protests in 2019. He faces possible life imprisonment if convicted under a sweeping national security law imposed by Beijing. The trial is expected to last about 80 days without a jury.
The 76-year-old media tycoon who founded the now-defunct Apple Daily newspaper faces one count of conspiring to print seditious publications to incite hatred against the Chinese and Hong Kong governments, as well as two counts of collusion with foreign countries to call for sanctions and other hostile actions against China and Hong Kong.
Flanked by three prison officers, Lai formally pleaded not guilty to the charges read to him, shortly after the court rejected a last-ditch attempt by his counsel to throw out a sedition charge.
Prosecutor Anthony Chau in his opening statements described Lai as a “radical political figure” and the “mastermind” behind a conspiracy. Chau also said that Lai had used his media platform to advance his political agenda.
Clips of interviews that Lai gave to foreign media as well as speeches at events between 2019 and 2020 were also played in court. In the video, Lai called for support from foreign governments and urged U.S. officials as well as then-President Donald Trump to impose “draconian” measures on China and Chinese officials in retaliation for imposing the national security law and restricting freedoms in Hong Kong.
His prosecution has drawn criticism from the United States and the United Kingdom. Beijing has called those comments irresponsible, saying they went against international law and the basic norms of international relations.
The Inter-Parliamentary Alliance on China, or IPAC, an international political group that’s critical of China’s human rights record and foreign policy, said Lai’s trial “fabricated” evidence that the media mogul was involved in its work. |
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Panama’s high court declared a mining contract unconstitutional
Legal Line News |
2023/11/26 16:37
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A New York appeals court Thursday reinstated a gag order that barred Donald Trump from commenting about court personnel after the former president repeatedly disparaged a law clerk in his New York civil fraud trial.
The one-sentence decision came two weeks after an individual appellate judge put the gag order on hold while the appeals process played out.
Trial judge Arthur Engoron, who imposed the restriction, said he now planned to enforce it “rigorously and vigorously.”
Trump attorney Christopher Kise called it “a tragic day for the rule of law.” Steven Cheung, a spokesperson for Trump’s 2024 presidential campaign, complained that the gag order was “nothing but attempted election interference, which is failing terribly.”
Engoron imposed the gag order Oct. 3 after Trump posted a derogatory comment about the judge’s law clerk to social media. The post, which included a baseless allegation about the clerk’s personal life, came the second day of the trial in New York Attorney General Letitia James’ lawsuit.
James’ lawsuit alleges Trump exaggerated his wealth on financial statements used to secure loans and make deals. Trump denies any wrongdoing. The Republican 2024 front-runner contends the lawsuit is a political attack instigated by James and furthered by Engoron, both Democrats.
Over the trial’s first few weeks, Engoron fined Trump $15,000 for violating the gag order. The judge expanded the order — which initially covered only parties in the case — to include lawyers after Trump’s attorneys questioned clerk Allison Greenfield’s prominent role on the bench. She sits alongside the judge, exchanging notes and advising him during testimony.
Trump’s lawyers sued Engoron, challenging his gag order as an abuse of power.
State lawyers supported the restriction, saying it was a reasonable step to protect Engoron’s staff. An attorney for the court system tied Trump’s comments to an uptick in nasty calls and messages directed at the judge and law clerk.
A court security captain wrote in a sworn statement last week that Greenfield has been receiving 20-30 calls per day to her personal cell phone and 30-50 messages per day on social media, LinkedIn and two personal email addresses.
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Trump pushes for election interference trial to be televised
Legal Line News |
2023/11/16 12:40
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Donald Trump is pushing for his federal election interference trial in Washington to be televised, joining media outlets that say the American public should be able to watch the historic case unfold.
Federal court rules prohibit broadcasting proceedings, but The Associated Press and other news organizations say the unprecedented case of a former president standing trial on accusations that he tried to subvert the will of voters warrants making an exception.
The Justice Department is opposing the effort, arguing that the judge overseeing the case does not have the authority to ignore the long-standing nationwide policy against cameras in federal courtrooms. The trial is scheduled to begin on March 4.
``I want this trial to be seen by everybody in the world,” Trump said Saturday during a presidential campaign event in New Hampshire. “The prosecution wishes to continue this travesty in darkness and I want sunlight.”
Lawyers for Trump wrote in court papers filed late Friday that all Americans should be able to observe what they characterize as a politically motivated prosecution of the Republican front-runner for his party’s 2024 nomination. The defense also suggested Trump will try to use the trial as a platform to repeat his unfounded claims that the 2020 election that he lost to Democrat Joe Biden was stolen from him. Trump has pleaded not guilty.
“President Trump absolutely agrees, and in fact demands, that these proceedings should be fully televised so that the American public can see firsthand that this case, just like others, is nothing more than a dreamt-up unconstitutional charade that should never be allowed to happen again,” Trump’s lawyers wrote.
The request for a televised trial comes as the Washington case has emerged as the most potent and direct legal threat to Trump’s political fortunes. Trump is accused of illegally scheming to overturn the election results in the run-up to the violent riot at the U.S. Capitol on Jan. 6, 2021, by his supporters.
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