The ailing real estate giant is being sued over its failure to repay a loan to state-backed China Construction Bank (Asia) amid a controversial debt restructure

The creditors’ opposition to the proposal could be a major problem for the ailing property giant and China’s crisis-hit real estate sector

Deutsche Bank is preparing to file a liquidation suit against Shimao in a Hong Kong court this month - a rare move by a foreign firm that stems from disappointment over the builder's debt rejig plan

The property firm is hoping to decrease its debt by about $6 billion to $7 billion amid a downturn in sales nationwide

The struggling real estate firm blamed "market uncertainties over debt refinancing” for being unable to repay its creditors in time

Moody’s cut its rating on Shimao by two notches, to Caa1 from B2, and lowered its outlook to negative, down from “ratings under review”

Fresh Moody's downgrade of Shimao's rating also hits investor confidence, highlighting the debt travails bedevilling some bloated developers

Shimao defaulted on a trust loan last month and has been scrambling to extend debt maturities including asset-backed securities and trust loans with creditors

Developer and its chairman sold a Shanghai hotel and a stake in a Hong Kong development, respectively, for a total of $836 million

The deal is part of the Chinese government's push to buy assets from cash-strapped private developers amid efforts to stabilise and tighten control

Shimao, which held a 26.7% stake in Guangzhou Asian Games City, said it sold its holdings to JV partner COLI for $290.65 million

Four of the firms are linked to Shimao, which is discussing payment arrangements with creditors, while Kaisa Group Holdings and Greenland Group are also on list