HONG KONG: The administrator of a major Evergrande onshore unit has asked creditors to provide details about the debt the embattled property developer owes to them ahead of the first creditor meeting to be held on Nov. 14, official filings showed.
The Guangzhou Intermediate People’s Court ruled last week that Evergrande unit Guangzhou Kailong Real Estate enter into bankruptcy and liquidation proceedings and appointed a liquidation group as the company’s administrator, according to a court filing.
The liquidation petition was filed by Vanward, a Shenzhen-listed electric appliance manufacturer, in relation to a dispute over an investment worth 200 million yuan ($27.90 million).
The petition comes after a Hong Kong court in January ordered China Evergrande Group, the offshore holding company, to be liquidated after failing to provide a satisfactory restructuring plan for $23 billion in offshore debt. A Hong Kong liquidation order, however, is not automatically recognised in mainland China.
Kailong’s administrator said in a letter to creditors dated Thursday asking them to declare details of the debt Kailong owed to them by Nov. 7, according to filings listed on the official enterprise bankruptcy information platform.
In response to the proceedings, Hengda Real Estate, Evergrande’s flagship property entity in mainland China and a unit under Kailong, last week said a bankruptcy of Kailong would not affect its normal operations, including its home completions and delivery to buyers.
Hengda and Evergrande’s liquidators did not immediately respond to requests for comment.
Source Homevior.in
