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Evergrande forced to liquidate

China Evergrande Group has been handed a liquidation order by a Hong Kong court, initiating a complex process to dismantle one of the largest casualties of the ongoing property crisis in China. The ruling, delivered by Hong Kong judge Linda Chan on Monday, adds another layer of complexity to Evergrande’s tumultuous journey from a property boom success to a poster child for the market’s decline, with liabilities exceeding $300 billion.

Before trading in its shares was halted on Monday, Evergrande’s market valuation had plummeted over 99% from its peak, standing at a mere $275 million.

This collapse is the most significant in a crisis that has not only impacted China’s economic growth but has also led to a record number of defaults by various developers. The liquidation process will serve as a litmus test for the legal authority of Hong Kong courts over assets primarily located in mainland China, where Evergrande holds the majority of its assets.

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What’s going on?

• Major Lithium Discoveries in California Ignite Calls for U.S. Investment in Domestic Production (theDeepDive)

• Amazon terminates iRobot deal, Roomba maker to lay off 31% of staff (CNBC)

• BMW To Deploy Humanoid Robots In Its Assembly Lines (theDeepDive)

• Drought in Western Canada impacting hydropower production as reservoirs run low (BNN)

• The Dark Fleet Dilemma: UK’s Role in Insuring Russian Oil Raises Concerns (theDeepDive)

• Navy again lowers requirements as it struggles to meet recruitment goals (NYP)

• Dave Portnoy Continues Losing Streak With Tesla Investment (theDeepDive)

• U.S. Failed to Stop Drone Attack Because of Identification Mixup (WSJ)

• Down The Rabbit R1 Hole: Is The New AI Device A Leap Forward Or A Fad? (theDeepDive)

• Disposable vapes to be banned in UK after stark warnings of risks to young people (CNBC)

• PayPal Fails To “Shock The World” As Shares Fall Following New AI Products Launch (theDeepDive)

• Egypt pyramid renovation sparks debate (Yahoo)

• Arizona: Proposed Legislation Seeks MLB Exemption From Minimum Wage (theDeepDive)

• House Republicans release impeachment articles against Mayorkas amid push to remove him over the border (ABC)

• RNC Wants to Go Ahead and Declare Trump the Nominee (theDeepDive)

What’s the latest?

• Evergrande Liquidation: A Hong Kong court has ordered China Evergrande, the world's most heavily indebted real estate developer, to undergo liquidation after a failed attempt to restructure $300 billion owed to banks and bondholders. The court's decision comes amid concerns about China's rising debt burden. Evergrande, among dozens of Chinese developers that have collapsed since 2020, owes about $25.4 billion to foreign creditors.

• Hydro Problems: Severe drought conditions in hydro-rich provinces like British Columbia and Manitoba in Western Canada are leading to a need for importing power from other regions. Climate change is making droughts more common and severe, putting pressure on hydroelectric producers.

• Leon’s Furniture The Developer: Leon’s Furniture Ltd. has received approval to rezone a 40-acre parcel of land near its Toronto headquarters to accommodate the development of 4,000 new homes. The mixed-use development will include townhouses, mid and high-rise buildings, community spaces, and a new flagship retail store and corporate headquarters for Leon’s.

• Amazon Walks From iRobot: Amazon and robot vacuum maker iRobot have abandoned their plans to merge in the face of opposition from EU antitrust regulators. The proposed $1.4 billion acquisition of iRobot by Amazon had no path to regulatory approval in the European Union, with concerns that Amazon might hinder iRobot rivals on its online marketplace.

• Rogers Sugar: Rogers Sugar Inc. has reached a tentative agreement with the union representing workers at its Vancouver refinery. The details of the deal have not been immediately disclosed. The unionized workers, represented by the Public and Private Workers of Canada, have been on strike since September 28, 2023.

The truth behind corporations buying houses

The stock market and stuff

• Only Two Bitcoin Miners Will Be Profitable Post Halving — Report (theDeepDive)

• Bayer shares fall nearly 6% on court order to pay $2.25 bln in damages (Reuters)

• Vince McMahon Reportedly Resigns As Executive Chairman Of TKO Group After Lawsuit (theDeepDive)

• Porter could consider IPO in the 'mid-term': CEO (BNN)

In the juniors

• Li-FT Power Begins 18,600 Metre Drill Program At Yellowknife Lithium (theDeepDive)

• First Phosphate Makes Two High-Grade Discoveries In Quebec Following Sampling Program (theDeepDive)

• Lumina Gold Targets H1 2025 For Release Of Feasibility Study For Cangrejos Gold-Copper Project (theDeepDive)

• Baselode Energy Set To Launch 19,500 Metre Drill Program In Search Of Uranium (theDeepDive)

• Market Movers: Gatekeeper Jumps 30% After Posting $2.3 Million In Net Income For Q1 2024 (theDeepDive)

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