China Evergrande: the first bankruptcy petition for the group arrives
China Evergrande, China's largest real estate developer and developer, has received a forced liquidation petition from a Hong Kong-based company and will have to defend itself in court on August 31st. This is the first time in the former colony that the liquidation of the Chinese real estate group is officially requested in court, a question that Evergrande's management is strongly opposing, saying that the group is undergoing restructuring.
The company that sued the Chinese developer for insolvency is Hong Kong Top Shine Global Limited of Intershore Consult (Samoa) Limited, According to a Hong Kong media report "Hong Kong 01", the beneficial owner of the company requesting the liquidation is Lian Haomin, a special member of the Hong Kong Special Committee. Lian Haomin, who is only 29, is also the chief president of the Kowloon Federation of Associations, a group of Chinese-born entrepreneurs. In the election of the Hong Kong Election Committee last year, Lian Haomin was elected to a political representative office. His company had invested HK $ 750 million in "RV Bao," a real estate and vehicle transaction services platform owned by China Evergrande. If the court accepted the request, the BoD would be dismissed and a liquidator would be appointed to deal with the insolvency procedure.
The China Evergrande Group made an announcement on Tuesday, June 28, stating that the amount involved in the liquidation request is HK $ 862.5 million, approximately € 104 million, and the company will firmly oppose the motion. He also said the company has been actively communicating with creditors about promoting its foreign debt restructuring plan, which is not expected to slow down as a result of these events. However, it is obvious that not all creditors will stand by and that some will begin to move even in the courts, in the squares where this is possible. This could aggravate the crisis for the Chinese real estate developer.
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The article China Evergrande: the first bankruptcy petition for the group arrives comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/china-evergrande-arriva-la-prima-istanza-di-fallimento-per-il-gruppo/ on Tue, 28 Jun 2022 18:08:10 +0000.