Evergrande Creditors Regroup as Liquidation Advocate Hesitates

China Evergrande Group’s chief agitator calling for its liquidation is suddenly backpedaling, but the line of creditors who may take up the torch doesn’t end there.

In Hong Kong’s insolvency system, liquidation lawsuits often start with a creditor’s petition. Top Shine Global Limited of Intershore Consult (Samoa) Ltd., one of Evergrande’s creditors, took up the petitioner’s role, only to surprisingly demur at what was assumed to be a final liquidation hearing Monday.

The resulting court adjournment bought Evergrande, the world’s most indebted property developer, more time to hammer out debt restructuring terms. But the 18-month old fight over its ...