A winding-up petition has been filed against embattled property developer China Evergrande Group at the Hong Kong high court, the judiciary's website showed.
Evergrande's offshore debt is regarded as being in default after late last year's payment commitments were missed; the company is weighed down by liabilities totalling more than $300 billion.
The petition was submitted by "Top Shine Global Limited of Intershore Consult (Samoa) Limited," and a hearing will take place on August 31. Evergrande did not comment on the petition immediately. Evergrande's offshore debt is regarded as being in default after late last year's payment commitments were missed; the company is weighed down by liabilities totalling more than $300 billion.
To allay market concerns of a chaotic collapse, state-owned firms have intervened to assist with the debt restructuring process and have taken over some of their assets. It is anticipated that by the end of July, the company will release a preliminary reorganization plan.
Early this year, Evergrande attempted to take possession of a sizable land piece in Hong Kong's rural Yuen Long area by hiring a receiver at the request of U.S. asset management firm Oaktree Capital Management, a lender for the project.
According to Evergrande, the appointment of receivers and the prospective sale of pertinent secured assets "would not have a major impact on the group's operations or financial situation, nor disrupt the group's ongoing debt restructuring effort."
