{"text":[[{"start":11.08,"text":"A Hong Kong-based private equity firm has agreed to pay $513mn for control of a China Evergrande subsidiary, in a rare win for creditors seeking to recoup losses from the world’s most indebted property developer."}],[{"start":23.44,"text":"PAG, led by Chinese financier Weijian Shan, has made an offer to acquire a 51 per cent stake in Evergrande Property Services from liquidators of the parent company, according to a stock exchange filing published on Friday."}],[{"start":37.02,"text":"The offer represents a roughly 30 per cent discount on the closing price in Hong Kong on Wednesday, when it was last traded. PAG will also pay Rmb500mn ($75mn) to cover fees on the transaction for liquidators."}],[{"start":51.64,"text":"“Following an extensive and competitive sale process, we are pleased to have been able to conclude this agreement with PAG,” said Eddie Middleton, one of the liquidators from restructuring firm Alvarez & Marsal."}],[{"start":63.12,"text":"“Much work remains to be done by all parties to achieve completion, and we will continue working hard with those parties to see the transaction through.”"}],[{"start":72.16,"text":"Evergrande’s liquidators have embarked on an exhaustive effort to recover assets for international creditors after its Hong Kong entity was ordered to be wound up in 2024."}],[{"start":81.8,"text":"The company was one of China’s largest property developers when it collapsed in 2021 with more than $300bn in liabilities. Its failure after years of rapidly recycling pre-payments for apartments into new projects marked a reversal of the country’s real estate boom."}],[{"start":99.04,"text":"Liquidators last week acknowledged that the prospect of recovering assets from subsidiaries in mainland China was “considered remote” and they had recovered just $436mn out of $46bn sought by creditors, not including the latest share sale."}],[{"start":113.88,"text":"The sale of the majority stake in Evergrande Property Services was seen by liquidators as a major potential source of funds alongside recovery of payments and legal proceedings."}],[{"start":124.06,"text":"The liquidators have sued PwC’s arms in mainland China and Hong Kong, as well as the firm’s global body, for $8.5bn over audit failures. Evergrande was found to have fraudulently inflated revenue in the run-up to its collapse."}],[{"start":137.38,"text":"They are also awaiting the result of a judicial review to potentially overturn a HK$1bn ($127mn) agreement between PwC Hong Kong and the city’s securities regulator."}],[{"start":149.2,"text":"The liquidators argue that the agreement to compensate Evergrande’s independent minority shareholders sidestepped the priority of creditors."}],[{"start":156.88,"text":"Even before the winding-up, Evergrande attempted a sale of the stake to Chinese developer Hopson for HK$20bn ($2.5bn), but the deal fell apart in 2021."}],[{"start":168.24,"text":"Shares of Evergrande Property Services fell 15 per cent on Friday, giving it a market value of HK$10.9bn."}],[{"start":180.84,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1793350834_1299.mp3"}