Evergrande Liquidation to Leave Little for Creditors to Claim

Bloomberg News | Yahoo Finance | Jan 30th, 2024
Category: Financial News

China Evergrande Group creditors are set to recover just a fraction of the billions of dollars worth of the builder’s debt they hold, with most of its assets likely hard to access for liquidators.

Almost all of Evergrande’s assets are in mainland China, presenting legal hurdles for non-Chinese administrators. The key Hong Kong holdings add up to just $2.9 billion compared with $25.4 billion in offshore liabilities as of the end of June 2022, according to a court document and Bloomberg’s calculations.

Creditors had sought to stave off the liquidation order through more than two years of negotiations with the world’s most-indebted developer, but that had failed to yield substantial progress. While the recovery prospects are bleak for offshore bondholders, what liquidator Alvarez & Marsal Inc. does may serve as a template for Chinese developers as the historic property crisis drags on.

Read More »

A golfer wouldn't play a course with just one club in his bag. In the same way, asset classes help you diversify and optimize your portfolio.

Think of us as your personal quarterback to help you navigate and mitigate the blindsides of life.

A great chef tastes as he cooks for the best result. A great financial planner checks in to make sure you're on course and adjusts along the way for the best result.