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Liquidators of China Evergrande Group have asked the Hong Kong High Court to appoint receivers to help identify and secure assets linked to founder Hui Ka Yan and some former executives. They are seeking to recover about USD 6 billion in past dividends and payments, but have managed to collect only USD 255 million so far against creditor claims of nearly USD 45 billion. Hui, who is in detention, has not disclosed his global assets. His ex-wife is also being investigated for holding a significant share of wealth.
Liquidators of the collapsed China Evergrande Group have applied to the Hong Kong High Court for receivers to be appointed, with the task of locating and protecting assets belonging to founder Hui Ka Yan. Hui has not disclosed his worldwide property holdings, despite repeated demands from the court. The liquidators are attempting to secure nearly USD 6 billion in dividends and remuneration previously received by Hui and other executives. So far, they have been able to recover only around USD 255 million through overseas asset disposals, leaving a wide gap against the creditor claims of about USD 45 billion. Advertisement
Evergrande, once the largest property developer in China, collapsed under liabilities of over USD 300 billion after its bond defaults in 2021 and unsuccessful restructuring efforts. The company was ordered into liquidation last year and was recently delisted from the Hong Kong Stock Exchange. The winding-up process is expected to be long, with limited recovery expected for creditors.
Hui has been in detention since last year on suspicion of financial misconduct and remains absent from public view. He has not complied with disclosure orders. His lawyers argued that because he is in custody, there is no risk of asset transfers or concealment. The High Court is expected to issue a decision on the appointment of receivers by December.
Liquidators are also examining the role of Hui's former wife, Ding Yumei, who is believed to have control over assets worth close to USD 1 billion. In the UK, a court earlier allowed her restricted access to frozen funds, permitting monthly withdrawals of around GBP 20,000 (about USD 26,000) to cover legal and personal expenses.
The asset recovery attempts have included efforts to sell Hui's private aircraft, valued between USD 25 million and USD 30 million. However, identifying and securing assets located in mainland China remains particularly difficult because of local legal complexities. Analysts note that even with receivers appointed, full recovery is unlikely given the size of claims and the difficulties in enforcement across jurisdictions.
The liquidation process is expected to extend for about ten years, reflecting both the scale of the company's debt and the challenges in tracing assets spread across multiple countries.
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