China Evergrande: Lin Ho-man, the failed arbitration and why the developer is likely to survive its winding-up petition

A company linked to Lin Ho-man failed in an arbitration against Evergrande over a botched scheme in 2021; his winding-up petition will be heard on October 30

Lin’s vehicles paid HK$1.5 billion for a stake in an IPO involving Fangchebao; Evergrande promised investors a 1.15 times refund if the IPO failed

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Published: 9:15am, 23 Oct 2023Updated: 9:29am, 23 Oct 2023

With chairman and founder Hui Ka-yan under “arrest”, the future of China Evergrande – the nation’s biggest corporate debtor – is up in the air. Can the property developer survive the next onslaught, in the form of a winding-up petition, from a Hong Kong-based creditor?

The lawsuit was filed in June 2022 by Top Shine Global Limited, whose ultimate beneficial owner is Lin Ho-man, according to Evergrande’s stock exchange filings. The petition is scheduled to be heard on October 30, having been adjourned five times while Evergrande put the finishing touches to a plan to restructure US$20 billion of defaulted debt and claims with offshore creditors.

Two companies linked to Lin are trying to recover a combined HK$1.73 billion (US$220 million) in capital and interest from a botched investment with Evergrande back in March 2021.

Here’s the story about the creditor and the reasons behind his legal actions against the debt-ridden Guangzhou-based developer.

1. Who is Lin Ho-man?

According to public records, Lin is the chairman and executive director of Hong Kong-listed fintech group HKE Holdings. The firm also provides design and building services in the medical and healthcare sectors.