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China’s Guangzhou R&F Properties Faces Liquidation Petition

R&F said on Tuesday its unit Trillion Glory had received a winding-up petition from a Singapore-based private equity fund due to non-repayment of a loan


R&F in selective default says S&P
The logo of Chinese developer R&F Properties is seen near the One Thames City construction site in London. Photo: Reuters.

 

Guangzhou R&F Properties is the latest Chinese property developer facing a liquidation suit filed by creditors.

The cash-strapped R&F said on Tuesday its unit Trillion Glory had received a winding-up petition from a Singapore-based private equity fund due to non-repayment of a loan.

The petition was filed on Monday at a Hong Kong Court by Seatown Private Credit Master Fund, which holds an 18% interest in the total outstanding loan amounting to $613.66 million.

 

ALSO SEE: Surge of New Loans Issued in China in June, Analysts Say

 

Last month, state-backed Sino-Ocean Group said it was facing a winding up petition from The Bank of New York Mellon and China Evergrande Group was ordered to liquidate earlier this year.

R&F said in a filing that the petition would not have any meaningful impact on its business.

It said the loan was pledged over a unit indirectly holding 68 hotels and one office building in China, and a secured creditor could enforce the collateral instead of petitioning for winding-up, which it said would be destructive in company value and diminish recoveries for creditors.

R&F is one of the obligors of the loan and its other subsidiary, R&F Properties (HK) Company Ltd, is one of the guarantors.

The petition is scheduled to be heard before the High Court on September 25.

Shares of the Guangzhou-based developer rose 1.2% by Tuesday morning, versus a 4.9% decline in the Hang Seng Mainland Properties Index.

Earlier this year, R&F launched its second bonds exchange for its $5.7 billion dollar notes in a deal that helped the company dodge a loan default and cut debt size.

It last month also extended the repayments of its onshore bonds.

 

  • Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.

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