The liquidation of China Evergrande Group, now in its second year, has become a case study in the complexities of corporate insolvency in a globalized, hyper-leveraged economy. With $45 billion in total debt and a corporate structure spanning 3,000 legal entities, the company’s collapse has tested the limits of cross-border legal frameworks, creditor coordination, and regulatory resolve. As joint liquidators Edward Middleton and Tiffany Wong of Alvarez & Marsal navigate a labyrinth of overlapping ownership and jurisdictional barriers, the process has exposed critical lessons for investors and policymakers alike.
The Asset Recovery Conundrum
To date, liquidators have sold just $255 million of Evergrande’s assets, a fraction of the…