Millennial Threatens Evergrande With Wind Down in Latest Setback

China Evergrande Group has only days to unveil its restructuring plan, but even if it meets the deadline, the embattled property developer faces a new and considerable hurdle: A young, politically connected investor who wants to wind down the company unless he gets his money back fast, Bloomberg reported. A business tied to Lin Ho Man, who only a few years ago graduated from the University of California Irvine, filed a petition in Hong Kong to wind down Evergrande if it doesn’t repay HK$862.5 million ($110 million). Having the suit withdrawn or dismissed has become a requirement for the developer’s shares to resume trading. The lawsuit is the first of its kind for Evergrande, which has more than $300 billion of debt and is at the center of China’s real estate crisis. The company has defaulted on bonds, failed to deliver properties on time and been sued by hundreds in the mainland seeking to gain control of assets. But none of these attempts has gone so far as asking for a winding down of the Shenzhen-based company. Creditors in Hong Kong may join the suit to demand quicker repayment as Evergrande’s restructuring could take months or even years, according to Gordon Tsang, a partner at law firm Stevenson, Wong & Co. Some of them might also worry that the developer will fail to honor the agreement, he added. “The winding-up petition can have a significant impact on Evergrande’s coming restructuring plan,” adding pressure and costs for the company, Tsang said. Read more.
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