From Fortune:

China Evergrande Group had a massive $19 billion in defaulted offshore bonds and $242 billion in assets. But, a Hong Kong court has ordered the company’s liquidation, and the bonds are now trading at just 1 cent on the dollar. Investors were blindsided by the lack of clarity over who was calling the shots, and the extensive micro-managing by unidentified government handlers. With the company’s assets located mostly in mainland China, creditors face an uphill battle to recoup their losses.

Global hedge funds piled into China Evergrande Group’s distressed-debt, envisioning big payouts. But over the next two years, the bonds became nearly worthless. Multiple attempts were made to strike a deal with creditors, but the push-back from regulators and detained billionaire chairman Hui Ka Yan torpedoed these efforts, ultimately leading to the company’s liquidation. Offshore creditors now face a battle to recoup their losses in mainland China.



Read more: Evergrande liquidation: Western hedge funds shocked by liquidation