Chinese R&F Properties faces liquidation threat in H. Kong

Guangzhou R&F Properties, a Chinese real estate developer, faced a legal challenge as its subsidiary, Trillion Glory, received a winding-up petition from Singapore-based Seatown Private Credit Master Fund.

The petition, filed in a Hong Kong court on Monday, cites non-repayment of a substantial loan totalling $613.66 million, with Seatown holding an 18 per cent stake.

This development marks another financial struggle for cash-strapped R&F amid a broader trend affecting Chinese property firms. Recent months have seen similar petitions against industry players like Sino-Ocean Group and China Evergrande Group.

In response, R&F noted in a filing that the petition would not significantly impact its operations. The loan, secured against assets including 68 hotels and an office building in China, led R&F to emphasise the potential destructive impact of liquidation, arguing for the protection of creditor recoveries through collateral enforcement.

The petition is scheduled for a hearing at the High Court on September 25. Despite these challenges, R&F’s stock saw a modest 1.2 per cent increase amid broader declines in the Hang Seng Mainland Properties Index.

Earlier efforts by R&F included a successful bond exchange valued at $5.7 billion earlier this year, aimed at averting default and reducing overall debt, along with recent extensions of onshore bond repayments.

Attribution: Reuters