Top Shine Global filed a winding up petition against China Evergrande in Hong Kong because it had not honored a financial obligation of HK$862.5mn ($109.91mn). In March last year, Top Shine had bought HK$750mn worth of shares in Evergrande’s subsidiary, Fangchebao (FCB) for a 0.46% stake. According to Reuters, a Top Shine Executive had mentioned that if an IPO for FCB did not happen by April 8 2022, Evergrande had promised to repurchase the shares at a 15% premium. The Chinese developer will oppose the filing and said that its offshore debt restructuring plans (to be announced next month) will not be affected by this petition. Reuters reported this is the first winding up petition to be filed against the distressed developer.
Evergrande’s 11.5% dollar bonds due in 2023 are trading lower at levels of 9 cents on the dollar down by 0.12 points.
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