Evergrande unit seeks debt details ahead of bankruptcy hearing

China’s embattled property giant Evergrande onshore unit requested creditors to provide details about the debt owed to them before the first creditor meeting on Nov. 14, as shown in official filings.

The Guangzhou Intermediate People’s Court recently ruled that Evergrande unit Guangzhou Kailong Real Estate should undergo bankruptcy and liquidation proceedings, appointing a liquidation group as the company’s administrator.

The liquidation petition was filed by Vanward, a Shenzhen-listed electric appliance manufacturer, over a 200-million-yuan ($27.90 million) investment dispute.

Following a Hong Kong court’s liquidation order against China Evergrande Group due to its failure to present a satisfactory restructuring plan for $23 billion in offshore debt, the petition has been initiated. However, it is important to note that a Hong Kong liquidation order does not automatically apply in mainland China.

The administrator of Kailong, a unit under Evergrande, has requested creditors to disclose the details of the debt owed to them by November 7. This information was conveyed in a letter dated Thursday, as per filings on the official enterprise bankruptcy information platform.

In light of these developments, Hengda Real Estate, Evergrande’s main property entity in mainland China, reassured that Kailong’s bankruptcy would not disrupt its regular operations, including the completion and delivery of homes to buyers.

Attribution: Reuters

Subediting: Y.Yasser