China Aoyuan Wins Court Approval on Debt Plan Amid Dissent

A Hong Kong court approved China Aoyuan Group Ltd.’s $6 billion debt restructuring plan and dismissed opposition from a creditor, paving the way for the builder to overhaul liabilities.

Judge Jonathan Harris made the decision on Thursday, according to people familiar with the matter. The ruling was reached after a two-day trial over a creditor’s objection to the offshore plan.

The Guangzhou-based builder has been mired in a two-year saga since its first offshore debt default, a predicament shared by scores of developers amid China’s property market crisis. Aoyuan in November said it obtained sufficient approval from creditors ...