China Evergrande Group's main onshore unit, Hengda Real Estate, faces liquidation after a Guangdong court accepted a creditor's bankruptcy petition, South China morning Post reported Friday, citing a court statement.

The Guangzhou Intermediate People's Court said the Huaxia branch of Guangzhou Rural Commercial Bank met the legal requirements to seek liquidation after Hengda failed to pay mature debts and had insufficient assets, the report noted.

The acceptance came a day after Evergrande founder Hui Ka Yan was sentenced to life in prison for financial crimes.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)