China Evergrande opposes winding-up petition filed by Top Shine Global as offshore debt restructuring plan underway
Global Times
By Global Times Published: Jun 28, 2022 10:25 AM
Debt-trapped China Evergrande said in a filing at HK stock exchange on Tuesday that it opposes the winding-up lawsuit filed by Top Shine Global, as the company has been actively communicating with creditors to push forward with its offshore debt restructuring plan.
The response came after a winding-up petition against the China Evergrande dated June 24 was filed by Top Shine with the High Court of the Hong Kong Special Administrative Region in connection with a financial obligation for the amount of HK$862.5 million ($109 million).
The company will oppose the petition vigorously, China Evergrande said.
The company does not expect that the petition will impact the company's restructuring plans or timetable, it added.
Top Shine Global is an investor in Evergrande's unit Fangchebao (FCB). It is the first winding-up petition known to have been filed against Evergrande.
Reuters reported that investment holding firm Top Shine Global bought 0.46 percent of FCB, a Chinese online real estate and automobile marketplace, last March for HK$750 million, as Evergrande sold 10 percent of the unit to 17 investors for a total $2.10 billion ahead of an initial public offering (IPO).
If an IPO did not materialize by April 8 this year, Evergrande would have to repurchase the shares at a 15 percent premium, according to the agreement, according to Reuters.
Evergrande said the company has been actively communicating with creditors to push forward with its offshore debt restructuring plan. It expects to announce its preliminary restructuring plan for its offshore debt before the end of July.
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