Hong Kong Court Denies Evergrande Founder's Request for Legal Fees

A Hong Kong court denied a request by lawyers for Hui Ka Yan, the founder of China Evergrande Group, to use assets under receivership to cover HK$1.2 million ($153,040) in legal expenses. Judge H. Au-Yeung ruled that the legal team did not prove that these specific assets were the only available means of payment.

The lawyers argued that Hui is unable to communicate with them or discuss his assets because he is currently serving a life sentence for crimes described as "heinous." Liquidators opposed the request, arguing that this lack of communication meant the lawyers could not legally act on behalf of the founder.

This judicial decision follows a recent order from a mainland Chinese court to confiscate assets belonging to Hui. The ruling occurs as liquidators continue efforts to recover approximately $7.7 billion in worldwide assets to address the $45 billion debt load of the China Evergrande Group, which defaulted on offshore bonds in 2021.