[riffraff]

If the assets are worth 10 but the debt is 100, creditors will not have anything of value transferred, and will have to write down a loss.

This could be a small impact or a big one.

If you are a person who was relying on those assets for income for your retirement this might mean you no longer have enough to live by. If you are a company you might in turn be forced to fold. If you're a stablecoin that bought evergrande bonds you might be forced to show you have no baking of your emissions..