(Reuters) – Shimao Group announced on Monday that China Construction Bank (OTC:) (Asia) has initiated a liquidation lawsuit against the Chinese developer for a financial obligation of HK$1,579.5 million ($201.75 million).
“The company believes that the petition does not represent the collective interests of the offshore creditors and other stakeholders,” Shimao stated in a stock exchange filing, noting that it will contest the lawsuit and proceed with its debt restructuring plan.
Recently, Shimao unveiled detailed restructuring terms to restructure its $11.5 billion offshore debt, aiming to reduce its debt by 60%. The Shanghai-based company joins a list of Chinese developers that have defaulted on offshore bonds, including missing interest and principal payments for a $1 billion offshore bond in July 2022.
Furthermore, Shimao is the latest Chinese developer to be confronted with a liquidation lawsuit.
China Evergrande (HK:) Group, the world’s most indebted property developer, was directed to be liquidated by the Hong Kong court in January, and a liquidation petition has also been filed against Country Garden.
($1 = 7.8289 Hong Kong dollars)
