April 8 (Reuters) – Chinese developer Shimao Group (0813.HK), opens new tab said on Monday China Construction Bank (Asia) had filed a liquidation petition against it in Hong Kong over unpaid debts, a rare case of a state-owned bank taking such legal action in the property downturn.
The petition centres on Shimao’s failure to repay loans of HK$1.58 billion ($201.75 million) and contrasts with legal processes against rival firms such as China Evergrande Group (3333.HK), opens new tab and Country Garden (2007.HK), opens new tab for defaulting on their debts that were launched by overseas-based creditors.
The loans include direct lending from China Construction Bank (CCB) (601939.SS), opens new tab to Shimao and the bank’s participation in syndicated loans from a club of lenders to the developer, according to a source with direct knowledge of the matter who could not be named because the information is confidential.
CCB did not respond to a request for comment on the petition or the composition of its loans to Shimao.
Source: REUTER
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