Chinese property giant Country Garden is in trouble after a creditor filed a petition to liquidate the real estate company over unpaid debt.
Country Garden Holdings Co. faces a liquidation threat over unpaid debts, it was reported on Wednesday.
The turmoil comes amid a prolonged property slump in China, with a Hong Kong court receiving a creditor’s petition for the liquidation of the company.
The petition, initiated by Ever Credit Ltd., stems from Country Garden’s failure to settle a term loan facility worth approximately $204 million, including accrued interest.
This legal move marks a new phase in the debt crisis engulfing one of China’s largest property developers. The first hearing is scheduled for May 17 at Hong Kong’s High Court, highlighting the urgency of the matter.
The situation draws parallels to the bankruptcy of Evergrande, another Chinese real estate titan that succumbed to its $200 billion debt burden, filing for bankruptcy in the U.S. in August 2023. The collapse of Evergrande, amid efforts by Beijing to downplay the crisis, has sent shockwaves through the real estate industry and financial markets, with Country Garden now teetering on the brink of a similar fate.
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