HONG KONG (Reuters) – Hong Kong’s High Court has further postponed until July 29 a hearing on a petition seeking the liquidation of the Chinese property developer, embattled Country Garden said in a filing on Thursday.
The company did not provide a reason for the delay. The hearing was originally scheduled to be postponed from May to June 11 as Country Garden requested more time to prepare evidence.
If Country Garden can show progress in debt restructuring talks with its offshore creditors, it will help the developer fight back against the liquidation petition.
Sources said Country Garden’s advisers, an ad hoc group of bondholders and bank lenders are still conducting due diligence to sort out the developer’s balance sheet.
The developer defaulted on $11 billion in offshore bonds last year and is currently restructuring its offshore debt.
Yongxin Co., Ltd., a unit of Hong Kong-listed Kingboard Group, filed a lawsuit against Country Garden in February for unpaid loans of US$205 million.
According to Reuters, Country Garden told some overseas creditors in April that it planned to propose a debt restructuring plan in the second half of this year.
The company’s shares have been suspended since April 2, pending the release of 2023 financial performance.
