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.
Lin is 31 years old, according to records compiled by Webb-site. A native of Chaozhou in southern Guangdong province, he is also the founder of a closely-held Hong Kong fintech, stockbroking and asset management group known as Monmonkey Group, and chairman of real estate investment firm Ever Royal International.
He holds many positions in youth federations in Hong Kong and mainland China, local political committees, foundations and government agencies, according to HKE Holdings, and data published by Tung Wah Group of hospitals, where he is a director.
Lin did not reply to email requests seeking comments on his businesses and the dispute with Evergrande.
What is the origin of the dispute with China Evergrande?
In March 2021, China Evergrande mooted a scheme to float its fintech unit known as Fangchebao, which uses big data, artificial intelligence, cloud computing, virtual reality and other digital technologies to match buyers and sellers for online real estate and automobile transactions.
Evergrande: Hui’s ‘arrest’ casts doubts on assets, support deal with creditors
Evergrande: Hui’s ‘arrest’ casts doubts on assets, support deal with creditors
The investors included Citic Capital, Hong Kong billionaire Henry Cheng Kar-shun, and an offshore investment vehicle controlled by Evergrande’s then-CEO Xia Haijun. Top Shine Global invested HK$750 million. Triumph Roc International, which was identified as a unit under Lin’s Monmonkey group, also put in HK$750 million.
The investment agreement contained a provision requiring Hui or Evergrande to refund investors 1.15 times the sum invested upon request, in case the Fangchebao listing failed to materialise within 12 months.
What is the reason for the arbitration and winding-up petition?
How Hui Ka-yan plans to rescue Evergrande from China’s corporate graveyard
How Hui Ka-yan plans to rescue Evergrande from China’s corporate graveyard
Evergrande later won an order from the Hong Kong Court of First Instance in September 2023, effectively restraining Triumph Roc from pursuing the arbitral proceedings.
What are the possible outcomes of the winding-up petition?
Top Shine Global’s winding-up petition on October 30, at 9.30am local time, is expected to last about 15 minutes, according to the Hong Kong judiciary. China Evergrande may survive this court battle, if Triumph Roc’s failed arbitration is any guide.
“I think the company gets the benefit of the doubt,” said Jonathan Leitch, restructuring partner in Hong Kong at Hogan Lovells. “Creditors would have to show up with some force and in significant numbers to persuade the court that they shouldn’t give the company a bit more time to figure this out.
“Given the public statement from the ad hoc group (AHG) representing major offshore creditors, I don’t see them throwing their weight behind a winding up petition just yet, as they have too much on the line.”
Aside from the AHG, other unsecured creditors did not feel their views were consulted in this restructuring, Leitch added.
“I’d be surprised if they were inclined to show up and press for liquidation,” he said. “I expect the court to exercise its discretion and grant an adjournment, even if some supporting creditors emerge pushing for a winding up.”