Global Creditors Face Long Fight With China Developers for Cash

Chinese builders defaulted on more than 140 bonds in 2022 and missed payments on a combined $50 billion in domestic and global debt based on issuance amount

(Bloomberg) — Global creditors are bracing for a drawn-out battle to recover money from China’s troubled developers as a property meltdown continues to roil the nation’s $735 billion offshore bond market for a third straight year.

Frustrated dollar bondholders have been trying to make defaulters pay, but their efforts have largely been stymied by lengthy debt restructuring processes and litigation. Behind their onshore peers in the pecking order, a few have appealed for intervention by regulators. Many have resorted to liquidation petitions, a risky legal action that could backfire by triggering fire sales at distressed prices.