China Evergrande Group’s creditors have long known they would recover only pennies on the dollar in one of China’s largest liquidations. Now, even that limited recovery has become more complicated.\n\nA mainland Chinese court sentenced Evergrande founder Hui Ka Yan to life in prison on Thursday and ordered the confiscation of his assets. His companies were fined a combined 15.8 billion yuan ($2.4 billion).\n\nThe ruling adds another layer of uncertainty for creditors owed roughly $45 billion, who must now navigate a legal landscape where the founder’s personal assets are seized and corporate penalties mount.

The case underscores the deepening challenges in resolving one of the world’s most indebted property developers.