Business & Economy

Evergrande vows to ‘vigorously oppose’ winding-up petition by investor

Shanghai, China, June 28 (EFE).- China’s Evergrande Tuesday vowed to “vigorously oppose” a winding-up petition submitted by a foreign creditor for a debt of around $110 million.

Evergrande admitted that Top Shine Global had filed the petition with the High Court on June 24 in a statement to the Hong Kong Stock Exchange.

Local investor Lin Ho Man is the owner of the Samoan-registered business Top Shine Global.

The firm stated that the 862.5 million Hong Kong dollar debt is the reason for the request for liquidation. However, the creditor omitted more information.

With nearly $300 billion in liabilities, it is the first known winding-up petition brought against Evergrande.

Evergrande stated that the petition would not affect its reorganization goals or timeline, maintaining its July 31 deadline.

The cash-strapped developer announced in the same statement that its shares would remain frozen after its listing was halted on March 21.

The company admitted in March that it wouldn’t be able to deliver its income statement for the year 2021 owing to the “huge number of audit processes” it faced,

The Hong Kong court announced on its website that it would hear the Top Shine Global petition on August 31.

After the summer of 2021, Evergrande gained notoriety when it racked up debts totaling more than $300 billion and had a liquidity crisis that led to the default of some of its offshore bonds.

After China in August 2020 announced limitations on access to bank funding for developers who, like Evergrande, had acquired a significant debt load by sustaining their expansion for years on aggressive leveraging tactics, the financial situation of many Chinese real estate businesses deteriorated. EFE


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