Creditors of Northeast Electrical Transmission & Transformation Machinery Manufacturing have postponed the first liquidation hearing against it by a month to allow time to study the H share's new debt settlement proposal.
The news about a possible escape from liquidation sent the the company's share price up 11.11 per cent to close at 60 HK cents yesterday.
The new proposal was a last-ditch effort by the firm to stave off liquidation on the eve of the court hearing. The hearing was originally scheduled to begin yesterday after the creditor consortium led by CICC Finance filed a liquidation petition against the state-owned power-generation equipment firm over unpaid debts of US$43 million.
A Northeast Electrical spokesman said the creditors had accepted the new proposal 'in principle' but needed time to study it.
A lawyer representing CICC Finance said her client had asked for a one-month adjournment of the hearing so the client would have time to study the new proposal, Reuters reported.
The creditor consortium was reported to have rejected the debtor's five previous debt-settlement proposals.