Several of China’s most-indebted real estate developers are facing winding-up hearings in Hong Kong court this month. Creditors are trying to recover the little left amid a property-debt crisis.

According to Bloomberg, China’s property giants Evergrande and Sunac are on the court list for hearings in November. Global lenders will closely watch the cases as the two companies defaulted on dollar bonds in the past year. 

Based on data compiled by Bloomberg, six Chinese developers with over $30 billion outstanding offshore bonds face winding-up hearings through January.

A winding-up order could lead to liquidation as a liquidator takes control of the company and manages its assets. 

London-based law firm Ashurst LLP told Bloomberg that due to Chinese’ developers’ record defaults this year and slow debt- restructuring plans, overseas creditors have used winding-up petitions from courts to pressure developers.

In June, the investment holding firm Top Shine Global from Samoa filed a winding-up petition against Evergrande for not repurchasing shares of its unit.

Now the court sets a date for the hearing. In a winding-up petition, Evergrande could be forced to sell its assets to repay debts if the court approves the case.

In July, Evergrande failed to deliver a debt restructuring proposal of $300 billion. As a result, it was forced to hand over its headquarters building in Hong Kong to lenders.China’s debt-hit real estate industry has at least $292 billion of due debt payments through the end of 2023. The enormous financial obligations further put pressure on many developers in the sector amid this year’s multiple defaults.

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