Today (February 28), Ever Credit Limited, a subsidiary of furniture company Kingboard Holdings, sued Country Garden and demanded a loan of 205 million USD.
The trial will take place on May 17. In the report submitted to the Exchange Securities Hong Kong, China’s largest private real estate company, said it will resolutely oppose the request to liquidate assets.
This move makes stock</a > Country Garden today dropped more than 12%. This movement goes against the Hong Kong stock exchange’s Hang Seng Index.
This happened a month after China Evergrande Group was sued in court in Hong Kong. issue a decision to liquidate assets. Evergrande is currently the most indebted company in the world with 300 billion USD.
Country Garden’s lawsuit has raised concerns among people buying a house and creditors about the debt crisis in the Chinese real estate sector amid the China is trying to strengthen people’s confidence.
The risk of Country Garden having to liquidate assets could worsen the real estate crisis and add more stress to borrowers. domestically and may delay the prospect of real estate market recovery. Over the past year, Chinese officials have launched a series of policies to support this market.
Country Garden said it continues to actively negotiate with international creditors on the restructuring plan that they soon announced. announced. However, this plan is being threatened by the request to liquidate assets.
Country Garden is prolonging the time to change many advisors, causing people to lose patience and want this company to liquidate its assets” one bond investor told Reuters.
However, Country Garden said the move by a single creditor would not have a major impact on day-to-day business. and restructuring the company’s international debt.
The negative actions of a single creditor will not have much impact on ensuring the company’s normal operations and restructuring. overall structure of foreign debts”Country Garden representative shared with Reuters.
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