One of Chinas largest-ever debt restructurings is in trouble before it even got going. China Evergrande Group was declared to be in default in late 2021, the highest-profile casualty of a broader crisis in the countrys property development industry. The government has stepped in to manage the overhaul, quelling fears of a disorderly collapse that could have jolted the world economy. But new setbacks this year for the company and its billionaire founder have raised the risk of a potential liquidation, and Evergrande bondholders are still wondering how much of their money theyll see after the dust settles.
1. How did we get here?
Evergrande, started in 1996 by Hui Ka Yan, relied on heavy borrowing to fuel its growth. It became the l…
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