China’s DaFa Properties ordered to wind up

CHINESE residential property developer DaFa Properties Group and its unit have been ordered to wind up by Hong Kong’s high court, an exchange filing showed on Wednesday (Oct 16).

In February, the company received a winding-up petition from China Construction Bank (Asia) related to outstanding 12.375 per cent senior notes due in 2022, totaling US$360 million. The petition also included the company’s unit, YinYi Holdings (Hong Kong).

An increasing number of Chinese property developers, including Country Garden, are facing liquidation lawsuits from creditors, while China Evergrande Group was ordered to liquidate earlier this year.

DaFa said last month that it may adopt measures that include proposing a debt restructuring plan to its creditors.

Trading in the company’s shares remained suspended following the winding-up order. REUTERS