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China Construction Bank (CCB) has filed a liquidation suit against the Chinese developer Shimao, in an effort to claw back money from the developer. The winding-up petition was filed on April 5 and relates to an obligation of HK$1.6bn ($204mn) according to the exchange filing by Shimao. Liquidation petitions against the Chinese developers have piled up due to creditors becoming impatient with the pace of debt talks. The hearing is scheduled on 26th June, according to the HK judiciary website.
In related news, COGARD, another prominent Chinese developer, has engaged Linklaters as its principal legal advisor to help facilitate debt restructuring talks with creditors, according to a statement released. COGARD has also engaged Kroll LLC to perform an independent recovery analysis on itself. According to the update, the company has made significant progress on its restructuring plan and reiterated its goal to reach towards a holistic solution safeguarding interests of all its stakeholders.
Bonds of both Shimao and COGARD continue to trade at deeply distressed levels of 3-7 cents on the dollar.