Acourt hearing on the proposed liquidation of Country Garden is due to resume today.

Hong Kong Stock Exchange-listed Country Garden, which used to be China’s largest homebuilder, started defaulting on international bond payments last October, whilst holding $190 billion in liabilities. In total, Country Garden defaulted on $11 billion worth of offshore bonds last year and is currently in the process of restructuring its debt.

In February, Hong Kong-based lender Ever Credit Limited filed the petition at a local court for Country Garden’s liquidation, due to it failing to repay a $205 million loan. At today’s hearing, Country Garden will have to present its plans for debt restructuring or risk a liquidation order. This would follow a Hong Kong court’s ruling last January, for the liquidation of China Evergrande Group, which repeatedly failed to restructure its more than $300 billion of debt.

https://www.foreignbrief.com/chinese-property-developers-liquidation-hearing-begins/