Ever Credit files winding-up petition against Country Garden

By Marisa Wong

Los Angeles, Feb. 28 – Country Garden Holdings Co. Ltd. announced that a winding-up petition was filed against the company on Feb. 27.

Ever Credit Ltd. filed the petition at the High Court of Hong Kong against Country Garden in relation to the non-payment of a term loan facility between Ever Credit as lender and Country Garden as borrower.

The term loan was in the amount of roughly HK$1.6 billion, plus accrued interest.

In the event the company is ultimately wound up as a result of the petition, any disposition of property directly owned by the company, any transfer of shares of the company or alteration in the status of the members of the company made after the start of the wind-up will be void unless a validation order is obtained from the court. On the other hand, any disposition of the property, transfer or alteration made on or after the commencement date will not be affected if the petition is struck out, dismissed or permanently stayed.

The company said it will oppose the petition vigorously.

The court has set the first hearing date for the winding-up petition on May 17.

The company said it intends to continue to proactively communicate and work with its offshore creditors on its restructuring plan and aims to announce terms to the market as soon as practicable.

Meanwhile, the company will try to maintain active communications with the petitioner.

The company noted that it currently does not expect the petition to have any substantive impact on its offshore restructuring process or timetable.

Country Garden is a Foshan, China, real estate developer.

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