The moment is expected to pass without fanfare. China Evergrande, a real estate developer that once represented the pinnacle of China’s economic prowess, will be kicked off the Hong Kong Stock Exchange on Monday. Evergrande, which made its financial debut in Hong Kong 16 years ago, had once been the fastest growing property developer in a country brimming with promise of profits for investors. It will be remembered as one of the world’s most indebted companies whose brought China’s financial system to a precipice. The company tested Beijing’s longtime "too big to fail" policy toward its biggest companies. It shattered its tolerance of unchecked borrowing by giant corporations. And Evergrande’s staggering debt of over $300 billion in 2021, exposed the vulnerabilities of China’s economy and its dependence on real estate as a driver of growth. Now what’s left is the carcass of a corporate behemoth — 1,300 not-yet-finished real estate projects in more than 280 cities and hundreds of thousands of home buyers still waiting on their apartments.

Then there’s the long line of creditors, from businesses in China that worked for Evergrande to investors in London and New York who bet on it, still waiting to be repaid. Last year, a Hong Kong judge ruled that Evergrande should be dismantled. She appointed Alvarez & Marsal, a firm that specializes in bankruptcies and had once helped unwind Lehman Brothers, to do the task. A year and a half into the job, the liquidators, as Alvarez & Marsal is known, have made small steps toward helping overseas creditors get tiny slices of what they are due. The latest publicly disclosed documents from Evergrande demonstrate the challenges. Creditors have made hundreds of legal moves against Evergrande’s projects in China, and dozens of assets have been frozen. In some cases, investors or local governments have taken over developments. It is already difficult for the Hong Kong liquidators to reclaim assets for other creditors because of Evergrande’s complex business structure with thousands of subsidiaries. To squeeze money out of what is left of Evergrande, the liquidators have to take over each subsidiary one at a time. Alvarez & Marsal has so far taken control of more than 100 companies and assets worth about $3.5 billion. But only about $255 million of the $45 billion that creditors in Hong Kong claim they are owed has been recovered. And the liquidators have warned that even the value of some of the seized assets is in question, casting "serious doubt on the amounts, if any, that may ultimately be realized for the benefit of the company’s creditors."

The liquidators are pursuing another legal route to try to extract money from Evergrande: going after the former chairman, Hui Ka Yan, his wife, Ding Yu Mei, and Evergrande’s former chief executive, Xia Haijun. A case taking place in Hong Kong, with hearings that are closed to the public, has targeted $6 billion of assets that Mr. Hui and other executives paid to themselves in the years after Evergrande’s Hong Kong public listing. It is a study in the excess of a bygone era in China’s one-time freewheeling real estate industry. So far, the case has mostly focused on Mr. Hui’s wife and Mr. Xia. Mr. Hui was detained in 2023 and the authorities have since confiscated $6.5 million and accused him of "organizing fraud." One recent filing to the court claimed that Xia Haijun, who was fined $2 million and banned from financial markets by a top Chinese regulator for securities fraud, is hiding assets worth $24 million in several houses and luxury cars in California. One of those properties, in Irvine, is worth $6.3 million and was bought in April 2022, one month after Evergrande suddenly delayed its annual results for 2021 and said $2 billion in loans had been seized by banks, court documents show. Several months later, Mr. Xia resigned over what the company said had been a plan to funnel $2 billion into one of its Hong Kong listed companies from a subsidiary. Just a few months before Mr. Xia was fined in March 2024, his wife spent $14.5 million on a sprawling mansion in Newport Beach, according to court filings. He has told the court he does not own anything worth more than $6,400."