The creditors of the Real Estate Real Estate in China have reportedly filed a lawsuit on the Jianfa Group, the largest shareholder of the developer, requesting to recover $ 1.4 billion (S $ 1.886 billion).
According to Reuters, a document submitted to the Hong Kong High Court on Monday (June 3) shows that the SARs under the Shenzhen State -owned Assets Supervision Commission have been summoned.Creditors require at least $ 1.4 billion in compensation.
Legal documents show that the prosecution led by Citiboli Group and Miyebron Law Firm is based on the "Keepwell Provision" provided by the SAR Jianfa Group.In this agreement, the parent company promised to provide liquidity support for the subsidiaries of bond issuance.
The lawyer said that although the maintenance agreement is not a direct guarantee, it is a credit enhancement mechanism. It is also the credit increase mechanism that Chinese companies have often used in offshore bonds in recent years.
The document said that the SAR Jianfa Group signed a guarantee with creditors on August 9, 2022 to assist South China City to fulfill the obligation to repay a series of bonds.However, Jianfa Group of the SAR failed to fulfill the obligation to provide credit support, so it urged the SAR to repay the unpaid principal, interest and other expenses.
It is reported that this is the first time since China ’s real estate industry has fallen into a crisis in 2021, the first time has been sued for state -owned shareholders.
Earlier, South China City Real Estate failed to pay a principal of $ 11.25 million in US dollar bonds expired on February 9th.The creditor believes that South China City has defaulted.
South China City ’s 2023 annual report shows that the SAR Jianfa Group is the largest shareholder of South China City with 29%of the shares.
Public information shows that the SAR Jianfa Group is a state -owned enterprise under the Shenzhen State -owned Assets Supervision and Administration Commission.Project implementation and other businesses.
