Core Viewpoint - China Evergrande Group is accelerating the disposal of its non-performing assets following a key ruling by the Hong Kong High Court regarding its liquidation process, with a total of approximately 11.3 billion yuan in bad debts being put up for sale [1][3][4]. Group 1: Asset Disposal - A total of 12 non-performing debts from the "Evergrande system" have been listed for sale, amounting to approximately 11.3 billion yuan, marking the largest batch transfer of Evergrande's assets by asset management companies since the company's crisis began [3][4]. - The disposed debts involve projects in nine major cities, including Beijing, Guangzhou, and Tianjin, primarily consisting of unfinished or unsold properties [6][4]. - Specific debts include 2.477 billion yuan related to the Tianjin project, 1.387 billion yuan for a project in Beijing, and 1.604 billion yuan for a project in Zhengzhou, among others [6][7]. Group 2: Overseas Liquidation Challenges - Concurrently, the company is facing significant challenges in its overseas liquidation process, with the Hong Kong High Court appointing joint liquidators for its subsidiary, CEG Holdings [8][11]. - The liquidators aim to preserve the group's assets for the benefit of creditors, but the complexity of international legal procedures poses difficulties in asset recovery [12][11]. - The liquidators have indicated that Evergrande's overseas assets available for disposal are less than 10 billion Hong Kong dollars, including shares in Evergrande Property and other investments [11][12].

Core Viewpoint - China Evergrande Group is undergoing a significant phase in its liquidation process, with the Hong Kong High Court ruling that only statutory creditors can participate in the liquidation oversight, excluding economic interest holders and shareholders from decision-making [1][3]. Group 1: Court Ruling and Liquidation Process - The Hong Kong High Court made a crucial ruling on April 17, stating that only creditors with statutory claims can be part of the liquidation oversight committee, effectively denying participation to bondholders and shareholders [3][4]. - The court emphasized that the liquidation process must be based on legal rights rather than economic interests to prevent procedural chaos and abuse of power [3][4]. - Since the liquidation order was issued on January 29, 2024, the process has faced significant challenges, with Evergrande being heavily indebted and shareholders excluded from asset distribution [3][4]. Group 2: Financial Status and Debt Recovery - Evergrande's total debt amounts to 2.4 trillion yuan, while its total assets are only 1.74 trillion yuan, indicating a substantial gap that complicates debt recovery for creditors [4]. - The liquidators are not only pursuing Evergrande's assets but also seeking to recover "illegal gains" from its former executives, with claims against former president Xia Haijun and former CFO Pan Darong amounting to $6 billion [4][6]. Group 3: Founder’s Asset Management - Founder Xu Jiayin has faced scrutiny over his asset management during the debt crisis, including a controversial "technical divorce" that transferred 42.7 billion yuan in assets to his ex-wife [6]. - The liquidators have taken control of Xu's offshore entity that owns a private jet, which is being sold as part of the liquidation process [6]. - Xu Jiayin controls nearly 60% of Evergrande's shares, making the clarification of his assets crucial for the liquidation process [6][7]. Group 4: Challenges in Debt Restructuring - Despite the court's ruling providing a framework for debt restructuring, significant challenges remain as Evergrande has yet to propose a viable restructuring plan [7]. - The liquidation of subsidiaries, such as Tianji Holdings, further complicates the overall debt resolution process [7]. - If Xu Jiayin continues to refuse cooperation, liquidators may take more aggressive actions, including asset freezes and potential criminal liability [7].

Core Viewpoint - China Evergrande Group is undergoing a liquidation process as per the Hong Kong High Court's ruling, which restricts participation in the liquidation committee to statutory creditors only, excluding economic interest holders and shareholders [1][4]. Group 1: Court Ruling and Liquidation Process - The Hong Kong High Court ruled on April 17 that only statutory creditors can participate in the liquidation process, explicitly denying the involvement of "ultimate holders" of bonds [4]. - The court emphasized that the liquidation process must be based on legal rights rather than economic interests to prevent procedural chaos and abuse of power [4]. - Shareholders are excluded from the liquidation committee due to the company's insolvency, and the court noted potential historical misconduct by the controlling shareholder [4]. Group 2: Challenges in Debt Restructuring - Despite the court's ruling providing a framework for debt restructuring, significant challenges remain, as Evergrande has not proposed a viable restructuring plan [5]. - The company's subsidiaries, such as Tianji Holdings, have also entered liquidation, complicating the overall debt resolution process [5]. Group 3: Evergrande Auto's Situation - Evergrande Auto is under scrutiny as it must meet specific criteria to resume trading on the Hong Kong Stock Exchange, including publishing all outstanding financial results and resolving any audit modifications [7][8]. - The company has been unable to secure funding to address its liquidity issues, delaying the announcement of its 2024 financial results [9].