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China's Guangzhou R&F Properties faces liquidation petition in Hong Kong

Published 07/09/2024, 01:16 AM
Updated 07/09/2024, 01:22 AM
© Reuters. FILE PHOTO: The logo of Guangzhou-based property developer R&F Properties is pictured at a strategic cooperation signing ceremony in Beijing, China July 19, 2017. Picture taken July 19, 2017.  REUTERS/Jason Lee/File Photo
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(Reuters) -Chinese property developer Guangzhou R&F Properties 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.

Cash-strapped R&F is the latest Chinese property developer facing a liquidation suit filed by creditors. Last month, state-backed Sino-Ocean Group said it was facing a winding up petition from The Bank of New York Mellon (NYSE:BK) and China Evergrande (HK:3333) 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 Limited, is one of the guarantors.

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

© Reuters. FILE PHOTO: The logo of Guangzhou-based property developer R&F Properties is pictured at a strategic cooperation signing ceremony in Beijing, China July 19, 2017. Picture taken July 19, 2017.  REUTERS/Jason Lee/File Photo

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.

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