Evergrande liquidators ask court to name receiver for founder Hui Ka Yan assets
The property developer has become an emblem of China’s property crisis since it defaulted in 2021
[HONG KONG] China Evergrande’s liquidators have asked Hong Kong’s High Court to appoint receivers to identify and preserve the assets of company founder Hui Ka Yan, as they try to recover funds related to one of the world’s biggest corporate meltdowns.
While Hui did not attend the Tuesday hearing, he remains a key figure in the ongoing case. So far, Hui has refused to disclose his assets. Hui’s lawyer said that the receivership request was unjust and that liquidators have been hostile to his client.
Judge Herbert Au-Yeung reserved judgement on Tuesday (Sep 2) and said he would hand down a decision at a later date.
Liquidators are seeking to recover US$6 billion in dividends and remuneration from several defendants, including Hui.
They have been scouring files and examining thousands of entities related to Evergrande as they look for potential paths to recover funds. Evergrande has become an emblem of China’s property crisis since it defaulted in 2021. Hong Kong’s High Court ordered the liquidation of the firm, once China’s largest property developer, in early 2024.
The liquidators also told the court on Tuesday that Hui received US$4.2 billion in dividends between 2017 and 2021.
If liquidators can convince the court to force Hui to reveal his holdings, it could shine a light on wealth that amounts to about an eighth of the firm’s preliminary estimated US$45 billion debt load.
Known for his lavish lifestyle, Hui has come to exemplify China’s real estate boom and bust. His status and whereabouts remain largely unknown. In late 2023, Bloomberg reported Hui was taken away by Chinese police, and was being monitored at a designated location under residential surveillance – a type of police action that falls short of formal detention or arrest. Apart from a company filing confirming he was under control, Chinese authorities have offered no further information since then.
Hong Kong’s High Court appointed Edward Middleton and Tiffany Wong of Alvarez & Marsal as liquidators for Evergrande in 2024. The company was removed from the Hong Kong stock exchange on Aug 25, after more than a decade and a half of trading. BLOOMBERG
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