29-04-2025
Evergrande chair refuses to disclose assets, liquidators say
[HONG KONG] China Evergrande Group chairman Hui Ka Yan plans to refuse disclosing details of his assets, its liquidators said, likely complicating efforts to wind up the defaulted builder to pay back creditors.
Hui expressed his intention in an Apr 23 response to the court, a lawyer representing the liquidators said in a Tuesday (Apr 29) hearing at the Hong Kong High Court. Hui's lawyer, who was at the hearing, did not push back on the liquidator's statement.
While the liquidators argued for the earliest date possible for the hearing to resume, Hui's lawyer asked the court for more time given that the case is 'complex' and 'sensitive'. The judge said the hearing on Hui's case will not be held before Jun 30.
Tuesday's hearing is part of a legal battle waged by the liquidators to outline and potentially claw back scraps from one of the world's biggest corporate implosions. Clarity on Evergrande's assets tied to Hui is crucial for liquidation as the filings show he controls nearly 60 per cent of the total stake.
Hui's lawyer did not immediately respond to a request for comment.
An emblem of China's years-long property crisis, Evergrande defaulted in 2021, resulting in a creditor petition to liquidate the company. When the court sided with creditors in early 2024, it appointed Edward Middleton and Tiffany Wong of Alvarez & Marsal as the liquidators who will also be in charge of running its operations.
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Evergrande and the liquidators have since taken steps to recoup some of what creditors are owed, including filing lawsuits against Hui, his wife Ding Yumei, former chief executive officer Xia Haijun, former chief financial officer Pan Darong, and three other entities including Xin Xin (BVI).
The lawsuits seek to recover US$6 billion in dividends and remuneration paid by the company on the basis that financial statements were allegedly misstated for several years going back to 2017, according to an exchange filing.
Hui controls his stake largely through Xin Xin, a British Virgin Islands-based corporate entity, according to the company's latest annual report filed to the Hong Kong stock exchange.
In 2023, Chinese authorities notified Evergrande that Hui has been subject to 'mandatory measures' due to 'suspicion of illegal crimes'. BLOOMBERG
