A hearing for China Evergrande Group in a Hong Kong insolvency court later this month will lay bare the once-unthinkable possibility of liquidating the property developer’s assets.
A wind-up order from Judge Linda Chan after the Oct. 30 hearing would wreak havoc on the struggling company that’s trying to finalize a restructuring plan to pay back creditors. Any efforts to wind up the world’s most indebted developer — even if difficult to enforce in mainland China — would provide a roadmap for other developers and creditors on how a liquidation of such magnitude may play out.
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