Key facts
- Liquidators for China Evergrande Group are challenging a HK$1 billion ($128 million) payout to minority shareholders.
- The legal challenge was filed in the Hong Kong High Court.
- Liquidators argue the settlement unlawfully prioritizes shareholders over creditors.
- The settlement was brokered by Hong Kong's securities regulator.
Liquidators for the collapsed developer China Evergrande Group have initiated legal proceedings to prevent a HK$1 billion ($128 million) payout to the company's minority shareholders. The liquidators are seeking a judicial review in the Hong Kong High Court, asserting that the private settlement, facilitated by the city's securities regulator, improperly places shareholders ahead of creditors.