Chinese court rejects creditors’ application to wind up Guangzhou R&F

A CHINESE court has rejected two creditors’ application for a bankruptcy restructuring of developer Guangzhou R&F Properties’ on Friday (Jul 14), according to China Securities Journal.

The developer’s 2021 and 2022 financial reports show it had more than 110 billion yuan (S$20.4 billion) in assets, the Journal said citing a response from R&F.

It noted the court found R&F’s operations were normal and no evidence to show it was insolvent.

R&F did not immediately respond to a request for comment.

Notices in an official database showed this week that creditors Guangdong Xiangzheng Trade and Commerce and Guangzhou Guangfeng Concrete had applied to the Guangzhou Intermediate People’s Court for a winding-up reorganisation against R&F, a rare court tactic against a mid-sized firm of its kind.

The dispute was over 20 million yuan (S$3.7 million) worth of commercial paper, R&F said in a statement on Thursday, adding it was not in insolvency and would seek legal measures to “resolutely” oppose the application. REUTERS