China’s Evergrande Division received a search warrant from a Hong Kong court

(Reuters) – China’s Evergrande said on Monday a court in Hong Kong had ordered it to wind down a key part of its offshore development, the latest legal victory for the embattled developer.

The liquids were In September, they filed for bankruptcy against the company’s subsidiary CEG Holdings BVI, hoping to get cash from the property company, which has defaulted in 2021 and is saddled with debt that fueled China’s real estate market crisis.

Evergrande, the world’s largest lender with more than $300 billion in debt, was ordered to be dissolved by Hong Kong’s High Court in January 2024 after it failed to submit a realistic restructuring plan for its $23 billion offshore debt.

The company’s liquidators – Edward Middleton and Tiffany Wong of Alvarez & Marsal Asia – are currently trying to recover at least some of the debt owed to creditors and $6 billion in payments and dividends to individuals including the founder.

They have also taken legal action against Evergrande’s auditor, Price Waterhouse LLP, and launched a lawsuit against commercial real estate services company CBRE Group, the Financial Times reported.

Trading in China Evergrande’s suspended shares will remain suspended from January 29, 2024, the company said.

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shinjini Ganguly)