(Reuters) - Chinese property developer Logan Group said on Friday that liquidation petitions against the Shenzhen developer and two of its units had been dismissed.
"Grand Court of the Cayman Islands and the High Court of Hong Kong have ordered that the Cayman Petition and the Hong Kong Petitions be dismissed respectively," the company said in a stock exchange filing.
Shares of the company jumped as much as 14.3% to their highest since Jan. 29.
Last month, the Hong Kong High Court had adjourned the liquidation proceedings for four weeks to allow a group of banks time to decide whether they would replace the original petitioners in the lawsuit aimed at liquidating the Chinese property developer.
The original petitioners, who hold Logan's 5.75% 2025 bond, had filed a winding-up petition against the developer and its two units in November 2022 through Citicorp International, the bond trustee.
The adjournment order came after Logan signed an agreement with a key bondholder group on the terms of restructuring its $6.6 billion in offshore debt.
Several Chinese developers, including China Evergrande (HK:3333) Group and Country Garden, have defaulted on their offshore debt as the sector became embroiled in a debt crisis since mid-2021. Evergrande, the world's most indebted developer, was ordered to liquidate weeks ago.