Chinese developer Logan Group's liquidation proceedings dismissed

Logan

16/02/2024 06:37

Feb 16 (Reuters) - Chinese property developer Logan
Group  3380.HK  said on Friday that liquidation petitions
against the Shenzhen developer and two of its units had been
dismissed.
    "Grand Court of the Cayman Islands and the High Court of
Hong Kong have ordered that the Cayman Petition and the Hong
Kong Petitions be dismissed respectively," the company said in a
stock exchange filing.
    Shares of the company jumped as much as 14.3% to their
highest since Jan. 29.
    Last month, the Hong Kong High Court had adjourned the
liquidation proceedings for four weeks to allow a group of banks
time to decide whether they would replace the original
petitioners in the lawsuit aimed at liquidating the Chinese
property developer.
    The original petitioners, who hold Logan's 5.75% 2025 bond,
had filed a winding-up petition against the developer and its
two units in November 2022 through Citicorp International, the
bond trustee.
    The adjournment order came after Logan signed an agreement
with a key bondholder group on the terms of restructuring its
$6.6 billion in offshore debt.
    Several Chinese developers, including China Evergrande Group
 3333.HK  and Country Garden  2007.HK , have defaulted on their
offshore debt as the sector became embroiled in a debt crisis
since mid-2021. Evergrande, the world's most indebted developer,
was ordered to liquidate weeks ago.
    

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by
Dhanya Ann Thoppil)
 ((Aaditya.GovindRao@thomsonreuters.com;))