Country Garden, a Chinese developer, is facing a winding-up petition in Hong Kong for non-repayment of a term loan, as reported by South China Morning Post. The petition was filed by Ever Credit, a unit of Kingboard Holdings, worth about HK$1.6 billion ($204 million).
This comes after Country Garden defaulted on a dollar bond last October, causing concerns in the bond and stock markets due to the company’s large projects. The petition indicates the second-largest restructuring effort among its peers following China Evergrande Group, which was ordered for liquidation in January.
While Country Garden plans to oppose the liquidation petition filed in Hong Kong’s High Court, concerns remain on the impact of Evergrande’s collapse on investors, workers, and homebuyers, as reported by CNN. The court hearing has been set for May 17, as the real-estate crisis in China continues to affect the economy since 2021.
