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Evergrande crisis: embattled developer could face liquidation as creditor files winding-up petition in Hong Kong
- The developer received the petition from a creditor for failing to pay US$109.91 million
- It is the first official winding-up petition against the Chinese property developer, which is teetering on a US$300 billion mountain of liabilities
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Embattled China Evergrande Group faces possible liquidation after it received a winding-up petition from a creditor reportedly owned by a member of Hong Kong’s leadership election committee, for failing to pay HK$862.5 million (US$109.91 million).
Evergrande, the mainland’s second-largest developer by sales, said the lawsuit against it was filed by a company called Top Shine Global for not fulfilling a financial obligation of HK$862.5 million, in a filing to the Hong Kong stock exchange on Tuesday morning.
The petition, representing Lin Ho Man and filed in the High Court of Hong Kong on June 24, is the first officially recorded winding-up petition against the Chinese property developer, which is teetering on a US$300 billion mountain of liabilities.
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Top Shine Global is an investor in Evergrande’s online property and automobile marketplace unit, Fangchebao, according to a filing by Evergrande in March last year.
01:46
World’s most indebted developer, China Evergrande Group, buys time to repay more creditors
World’s most indebted developer, China Evergrande Group, buys time to repay more creditors
The investment firm, owned by Lin, bought 0.46 per cent of Fangchebao for HK$750 million last March.
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