Hong Kong court dismisses petition to liquidate Chinese developer Shimao Group (updated)

Shimao group

02/12/2024 10:08

(Adds details and background from paragraphs 2 onwards)
       Dec 2 (Reuters) - China's Shimao Group  0813.HK  said on
Monday that the High Court in Hong Kong dismissed a petition
seeking the liquidation of the embattled property developer.
    The petition was filed by China Construction Bank (Asia) in
April over Shimao's failure to repay loans of HK$1.58 billion 
($203.06 million). It was a rare case of a state-owned bank
taking such legal action during the property downturn.
    Since China's property crisis unraveled in 2021, several
developers in the country, including China Evergrande Group,
have faced liquidation lawsuits by creditors, with some firms
already ordered to dissolve.
    Shimao said the petition against it was dismissed by
consent. It added that in aggregate about 79.06% of the
creditors had supported the proposed restructuring of the
offshore debt.
    The court hearing for the scheme convening is scheduled for
January 16, 2025.
    
   

($1 = 7.7809 Hong Kong dollars)

 (Reporting by Sherin Sunny in Bengaluru; Editing by Abinaya
Vijayaraghavan)
 ((Sherin.Sunny@thomsonreuters.com;))