Hong Kong grants Shimao a 4-week reprieve to work out debts, avert developer’s liquidation
- China Construction Bank had filed a liquidation petition in April after Shimao failed to repay its dues of US$202 million
Embattled Chinese developer Shimao Group Holdings has been given a four-week reprieve by a Hong Kong court, giving it more time to secure lenders’ approval for its debt restructuring proposal, amid a rise in the number of creditor-led liquidation petitions.
Justice Jack Wong Kin-tong on Wednesday adjourned the case to July 31, in the first hearing since China Construction Bank (Asia) filed a liquidation petition in April after Shimao failed to repay its dues of HK$1.58 billion (US$202 million).
The decision made by Hong Kong court followed “a consensual application for an adjournment” filed by Shimao and the petitioner, a company filing to the Hong Kong exchange showed.
Shimao said in the filing that the company and its advisers are “actively advancing discussions with creditors” regarding the restructuring proposal. The company said it had extended a deadline for the early consent fee, or fee paid to creditors as an incentive to support its proposal, to 5pm local time on July 31.
In a filing to the Hong Kong stock exchange in April, Shimao said it “vigorously” opposes the winding-up petition.