The Hong Kong Stock Exchange (HKEX) has directed China Evergrande to get a winding-up plea filed by a creditor dismissed for its shares to resume trading.
Shares of the embattled property developer have been on hold since March 21 as it struggles to repay suppliers and creditors and complete projects and homes.
Top Shine Global Ltd, an investor in Evergrande unit Fangchebao, filed a winding-up plea in June against the developer for not executing a pact to repurchase Fangchebao shares from Top Shine.
China Evergrande is seeking the support of offshore creditors to fight the lawsuit aimed at liquidating it, ahead of the first hearing in a Hong Kong court next month.
Meanwhile, Evergrande will also have to conduct a probe into 13.4 billion yuan ($1.98 billion) pledged by a unit to banks and release its pending financial results.
The company said its unit, Evergrande Real Estate, had not made principal and interest payments on its Shenzhen-listed bonds, as at July 8.
The bonds have an issue size of 4.5 billion yuan, with a coupon rate of 6.98% and a term of 3 years.
“Evergrande Real Estate will actively negotiate with the bondholders in order to reach a consensual solution,” China Evergrande said in a filing to the bourse, and will try to resolve debt risks.
Reeling under more than $300 billion in liabilities, the company’s offshore debt is deemed to be in default after it missed payment obligations late last year.
- Reuters with additional editing by Sean O’Meara