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China debt crunch

Oaktree scuppers Evergrande plan by seizing 'Versailles mansion' plot

Receiver appointed to Hong Kong development that was key to bondholder deal

A development known as 'Project Castle' was to be key collateral in a planned restructuring of Evergrande’s mammoth debt.   © Reuters

LONDON/HONG KONG (Financial Times) -- Oaktree Capital has scuppered a plan to restructure Evergrande's $20 billion of offshore debts by seizing a vast Hong Kong plot where the ailing property developer's chair had intended to build a Versailles-like mansion.

Los Angeles-based Oaktree this week moved to seize control of the asset -- known by insiders as "Project Castle" -- after Evergrande defaulted on a loan against which the $158 billion asset manager had security, according to two people familiar with the matter.

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