Hong Kong court adjourns Chinese developer Shimao's liquidation petition (updated)

Shimao group

08/08/2024 09:57

(Adds further details on adjournment and petition)
       Aug 8 (Reuters) - Embattled Chinese property developer
Shimao Group  0813.HK  said on Thursday a Hong Kong court had
adjourned a winding up petition against the company to Dec. 16,
allowing Shimao more time to work with creditors on a revised
restructuring proposal.
    Since the Chinese property sector plunged into a debt crisis
in 2021, numerous developers, including major players like China
Evergrande Group, have been hit with liquidation lawsuits from
creditors, with some firms already ordered to dissolve.
    The high court has postponed the liquidation petition
against Shimao for the third time, following previous
adjournments on July 31 and June 26 this year.
    The petition was filed in April by China Construction Bank
(Asia) over non-repayments of about $200 million worth of loans.
    Shimao, a property developer based in Shanghai, failed to
meet its offshore debt obligations totaling $11.5 billion in
2022. 
    In response to creditors' opposition to its initial
restructuring plan presented in March, the company recently
released an improved version of the proposal. 
    These terms aim to gain more support from the creditors for
the company's debt restructuring efforts.

 (Reporting by Roushni Nair in Bengaluru; Editing by Sonia
Cheema)
 ((Roushni.Nair@thomsonreuters.com;))