China’s Guangzhou R&F Properties faces liquidation petition in Hong Kong
The petition is scheduled to be heard before the High Court on Sep 25
CHINESE property developer Guangzhou R&F Properties said on Tuesday (Jul 9) its unit Trillion Glory had received a winding-up petition from a Singapore-based private equity fund due to non-repayment of a loan.
The petition was filed on Monday at a Hong Kong Court by Seatown Private Credit Master Fund, which holds an 18 per cent interest in the total outstanding loan amounting to US$613.66 million.
Cash-strapped R&F is the latest Chinese property developer facing a liquidation suit filed by creditors. Last month, state-backed Sino-Ocean Group said it was facing a winding up petition from The Bank of New York Mellon and China Evergrande Group was ordered to liquidate earlier this year.
R&F said in a filing that the petition would not have any meaningful impact on its business.
It said the loan was pledged over a unit indirectly holding 68 hotels and one office building in China, and a secured creditor could enforce the collateral instead of petitioning for winding-up, which it said would be destructive in company value and diminish recoveries for creditors.
R&F is one of the obligors of the loan and its other subsidiary, R&F Properties (HK) Company Limited, is one of the guarantors.
The petition is scheduled to be heard before the High Court on Sep 25.
Shares of the Guangzhou-based developer rose 1.2 per cent by Tuesday morning, versus a 4.9 per cent decline in the Hang Seng Mainland Properties Index.
Earlier this year, R&F launched its second bonds exchange for its US$5.7 billion US dollar notes in a deal that helped the company dodge a loan default and cut debt size.
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It last month also extended the repayments of its onshore bonds. REUTERS
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