A key offshore bondholder group of China Evergrande plans to join a petition to liquidate the developer at a hearing in a Hong Kong court on Monday, Reuters reported this week.
The bondholder group owns more than $2 billion in offshore notes guaranteed by Evergrande and its support to a winding-up petition against the world’s most indebted developer increases the chances of an immediate liquidation order from the court, lawyers in the industry said.
What happens if court orders Evergrande liquidated?
If a liquidation order is issued, a provisional liquidator and then an official liquidator will be appointed to take control and prepare to sell the developer’s assets to repay its debts.
The liquidators could propose a new debt res…
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