Property developer China Evergrande is struggling to reach a deal with foreign bondholders, raising the possibility that a court will tell the company to wind down.

Evergrande, once China’s largest property developer by sales, sold more than $20bn of dollar bonds during a debt-fuelled spending spree. The company defaulted on its foreign debt in late 2021, and has since been embroiled in a difficult negotiation with international bondholders. The latest bone of contention: whether Evergrande should be allowed to use its assets outside of China to pay debt incurred within the mainland.