China Builder Jiayuan Gets Court Order to Liquidate Assets (1)

A third Chinese developer faces court-ordered liquidation after losing a winding-up case in Hong Kong, adding to a small but growing number of legal victories for creditors involving overdue debt.

Jiayuan International Group Ltd. received the order Tuesday, nearly eight months after a petition was filed by a bondholder involving $14.5 million allegedly due on a dollar note. Two peers got such orders last year from courts in Hong Kong, a gateway for investors to access mainland issuers’ high-yield offshore bonds.

Chinese junk dollar notes have slid into unprecedented distress the past two years, with defaults soaring to record heights ...