Evergrande liquidators have recovered about 1% of creditor claims in 2.5 years

what happened

Liquidators handling China Evergrande Group have gathered $435.9 million so far by selling off assets and collecting on loans receivable, according to their second progress report, Reuters said. Creditors hold claims of around $46 billion, so the recovery covers only a sliver of what is owed. The report came from Edward Middleton and Tiffany Wong of Alvarez & Marsal, who were appointed after a Hong Kong court ordered the group wound up in January 2024.

The disposals include aircraft, artwork and club memberships. Of 107 pieces found at the group's Hong Kong headquarters, 96 were sold for $28.8 million, a loss against their value. The collection featured works by Picasso, Monet and Warhol, along with sculptures by Moore and Hepworth. A private jet is expected to bring roughly $12 million in the final quarter. The team is also pursuing a $2 million return from an American university tied to a 2020 gift.

The liquidators control more than 100 subsidiaries across several jurisdictions, yet they described the chances of recovering assets held by mainland Chinese units as 'considered remote'. Industry experts estimate the wind-down could take well over a decade.

why it matters

The low recovery rate highlights how deep the property crisis remains in China. For investors, it is a reminder of the risks tied to Chinese developers and their bonds, since payouts are spread over years and the size of the first interim dividend is still unknown. The property sector continues to weigh on the world's second-largest economy.

market impact

China property developers and Hang Seng: weak creditor recoveries keep pressure on the sector's debt market

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