China’s real estate downturn persists, this time with the country's second-largest bank filing a liquidation petition against a major developer.
China Construction Bank (CCB) has filed a liquidation petition against Shimao over failure to repay loans of nearly HK$1.6 billion ($200 million), according to a Hong Kong stock exchange filing by the property developer.
«The company is of the view that the petition does not represent collective interests of the company's offshore creditors and other stakeholders,» Shimao said.
Restructuring Plans
Shanghai-based Shimao’s $11.7 billion of offshore debt was first in default after missing the interest and principal payments for a $1 billion offshore bond in July 2022. In March, it unveiled debt restructuring plans and it said in the latest filing that it would press on with it with the aim to cut debt by 60 percent.
According to a «Reuters» report in March citing unnamed sources, a group of major bondholders opposed the plans due to the size of losses and lack of upfront payments.
