China's Shimao faces liquidation suit over failure to pay $202 mln loan (updated)

Shimao group

08/04/2024 01:00

(Adds details and background in paragraphs 2-6)
       April 8 (Reuters) - Shimao Group  0813.HK  said on
Monday China Construction Bank (Asia) had filed a liquidation
lawsuit against the Chinese developer over a financial
obligation of HK$1,579.5 million ($201.75 million). 
    "The company is of the view that the petition does not
represent collective interests of the offshore creditors and
other stakeholders," Shimao said in a stock exchange filing,
adding it will oppose the lawsuit and continue with its debt
restructuring plan.
        Last month, Shimao laid out detailed 
    restructuring terms
     to revamp its $11.5 billion offshore debt with an aim to
cut its debt by 60% last month. 
  
        Shanghai-based Shimao is among the many Chinese
developers that have defaulted on offshore bonds, after it
missed the interest and principal payment for a $1 billion
offshore bond in July 2022.
  
        It is also the latest Chinese developer to face a
liquidation lawsuit.
  
        China Evergrande Group  3333.HK , the world's most
indebted property developer, was ordered to be liquidated by the
Hong Kong court in January, and a liquidation petition has also
been filed against Country Garden  2007.HK . 
  
        
  
    ($1 = 7.8289 Hong Kong dollars)

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Sherry
Jacob-Phillips and Kim Coghill)
 ((Himanshi.Akhand@thomsonreuters.com;))