Offshore creditors may enhance recovery chances against Evergrande by proving it owes money to onshore subsidiaries.
Offshore creditors of China Evergrande may improve their recovery chances if they prove Evergrande owes money to its onshore subsidiaries, according to experts. Becoming de facto shareholders of Evergrande's onshore assets, offshore creditors now have another route to recoup funds from the property developer with $23bn offshore liabilities. If subsidiaries reveal outstanding loans, offshore creditors could be considered higher-seniority creditors. However, recovery will be challenging, with legal cases both onshore and off and potential creditor conflicts.
August 22, 2024
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