Reported 6 months ago
Creditors of China South City have filed a $1.4 billion lawsuit in Hong Kong against the developer's largest state-owned shareholder to recover payments owed, marking the first legal action against a Chinese state shareholder for recovery under the keepwell provision amidst the country's property sector debt crisis. The lawsuit names Shenzhen SEZ Construction and Development Group Co. Ltd (SZCDG) as the defendant, demanding repayment as SZCDG failed to fulfill obligations to assist China South City with bond repayments. This legal action is part of a series of cases against defaulted Chinese developers in Hong Kong amidst the ongoing debt crisis.
Source: YAHOO