©Reuters
Investing.com: Developer in trouble Country garden Holdings (HK:), which is at the center of China’s property market crisis, received a liquidation petition in Hong Kong on Wednesday due to its inability to repay some of its debts.
Lender Ever Credit Ltd has filed an application in the High Court of Hong Kong for non-payment of a loan of HK$1.6 billion ($200 million), plus interest, Country Garden said in a statement to the Hong Kong Stock Exchange.
The first hearing for the appeal is scheduled for May 17.
Country Garden is undergoing a massive review of its debt obligations and has held numerous restructuring talks with creditors after recording multiple defaults in 2023. The company, which is one of the largest property developers in China, has now become the face of a company in difficulty in the sector, amid slowing sales, weakening prices and fears of a wave of defaults.
Equal to China Evergrande Group (HK:), whose default had triggered China’s ongoing property crisis, was ordered into liquidation by a Hong Kong court earlier this year, after receiving a similar liquidation petition from some of its his creditors.