China Builder Jiayuan Gets Court Order to Liquidate Assets

  • Case in HK was linked to $14.5 million of alleged overdue debt
  • Jiayuan is the latest developer to receive a winding-up order

A third Chinese developer faces court-ordered liquidation after losing a winding-up case in Hong Kong, adding to a small but growing number of legal victories for creditors involving overdue debt.

Jiayuan International Group Ltd. received the order Tuesday, nearly eight months after a petitionBloomberg Terminal was filed by a bondholder involving $14.5 million allegedly due on a dollar note. Two peers gotBloomberg Terminal such orders last year from courts in Hong Kong, a gateway for investors to access mainland issuers’ high-yield offshore bonds.