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Debt-stricken Fantasia becomes first Chinese developer to face a wind-up petition, possible liquidation
- Fantasia said a major subsidiary was facing a wind-up petition filed by creditors, which could force the debt-ridden developer into insolvency
- It is the first time that a wind-up petition related to offshore debts has been filed against a mainland developer or its subsidiaries
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Fantasia Holdings Group said a major subsidiary was facing a wind-up petition filed by its creditors, which could force the debt-ridden Chinese developer into insolvency.
The Shenzhen-based developer said in a stock exchange filing on Thursday evening that the petition was related to a US$149 million loan of which Fantasia Investment Holdings was a guarantor.
It is the first time that a wind-up petition related to offshore debts has been filed against a mainland developer or its subsidiaries.
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“The company will seek legal advice to protect its legal rights and interests and take all necessary measures including maintaining a constructive dialogue with the petitioner to address the matter,” Fantasia said in the filing to the Hong Kong stock exchange. “Further announcement will be made by the Company as and when appropriate.”
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
It did not reveal the names of the creditors that filed the petition.
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