Hong Kong court adjourns China developer Shimao's liquidation petition

Shimao group

31/07/2024 11:12

HONG KONG, July 31 (Reuters) - Embattled Chinese
property developer Shimao Group  0813.HK  said on Wednesday a
Hong Kong court had adjourned until Aug. 12 a liquidation
hearing against the company, allowing it more time to work with
creditors on a revised restructuring proposal.
    Many Chinese property developers are facing liquidation
lawsuits by creditors since the sector slipped into a debt
crisis in 2021, with a handful, such as industry giant China
Evergrande Group  3333.HK , ordered to be liquidated.
    "The High Court has further adjourned the hearing for the
petition to August 12," the company told the stock exchange in a
brief filing.
    The petition against Shimao was filed in April by China
Construction Bank (Asia) over non-repayments of about $200
million worth of loans.
    The Shanghai-based developer, which defaulted on offshore
debt of $11.5 billion in 2022, published sweetened terms for its
restructuring last week to garner support from creditors, who
had opposed the plan first laid out in March. 
    The new terms include adding a minimum cash interest payment
for the new notes, enhancement of the guarantee and security
package, and lowering the conversion price for mandatory
convertible bonds to HK$6 ($0.77) a share from HK$8.5. 
    Shimao also extended for the fourth time its deadline for an
early consent fee, an incentive for creditors to back the
restructuring plan, to Aug. 30. 
    Smaller peer Times China  1233.HK 's liquidation hearing was
also adjourned to Aug. 12, a filing showed on Wednesday.
    The same day Kaisa Group  1638.HK  will have its next
liquidation hearing, which could be one of the last for the
Shenzhen-based developer before the Hong Kong High Court makes a
ruling. 
($1=HK$7.8119)

 (Reporting by Clare Jim; Editing by Clarence Fernandez)
 ((clare.jim@thomsonreuters.com;))