China developer Sino-Ocean faces winding-up petition in Hong Kong
STATE-BACKED Sino-Ocean Group said on Friday (Jun 28) that it has received a winding-up petition filed against the Chinese property developer by The Bank of New York Mellon in a Hong Kong court.
The petition was filed by the United States lender’s London branch for non-repayment of 3.25 per cent guaranteed notes due 2026 issued by a unit in an aggregate principal amount of US$400 million.
The Beijing-based developer said it has made significant progress to form a solution to its current offshore liquidity situation and is in advanced talks with its lenders regarding a debt management arrangement.
Bloomberg News had earlier reported on the liquidation petition.
A growing list of Chinese property developers are facing liquidation lawsuits filed by creditors, including Country Garden. China Evergrande Group was ordered to liquidate earlier this year.
Sino-Ocean, which is among many companies that have defaulted on its offshore bonds since the China property sector slid into a debt crisis in mid-2021, started the process of restructuring its offshore debt in the second half of last year.
The company said in a filing on Thursday that its main onshore unit had not raised sufficient funds to repay the principal and interest on seven yuan bonds due on Friday, but noted that the payments have a 30-day grace period. REUTERS
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