A Hong Kong court on Monday ordered embattled property developer China Evergrande Group to wind up, over a year after a liquidation petition was filed by an investor.
The Hong Kong High Court said the company had failed to come up with a detailed plan to restructure its debts after the case was adjourned last December.
But it is unknown how the liquidation order will affect Evergrande, whose business is largely conducted on the mainland.
The company had been working on a debt restructuring plan with a group of bondholders for almost two years, according to media reports, but an agreement had not been reached.
Fergus Saurin, a legal partner who acted on behalf of the group, said on Monday that he was not surprised by the outcome, adding that the company "only has itself to blame."
The troubled real estate developer is at the center of a prolonged property crisis that has led to a significant decline in confidence in the Chinese housing market.
The company was saddled with 2.39 trillion yuan ($331 billion) in debt as of the end of June last year.
It was reported in October last year that the founder and chairman of the cash-strapped Chinese property giant, Hui Ka Yan, had been placed under the control of Chinese police.
