HONG KONG (Reuters) -A group of offshore creditors of China South City is set to file a lawsuit against the debt-laden developer's biggest state-owned shareholder for dues, four sources said, in what would be the first such case in the crisis-hit property sector. China South City earlier this month missed a principal payment of $11.25 million on a dollar bond due on Feb. 9, and is deemed by creditors to be in default on offshore debts worth $1.3 billion, two bondholder sources said. The group of creditors, who have formed a so-called ad-hoc group, is preparing to file the lawsuit in a Hong Kong court against state-owned Shenzhen SEZ Construction and Development Group Co., which owns 29% of the company, the four sources said.
A group of offshore
creditors of China South City are set to file a
lawsuit against the debt-laden developer s biggest state-owned
shareholder for dues, four sources said, in what would be the
first.
(Bloomberg) A Chinese property developer that’s partially owned by a state-run firm issued its strongest warning yet over a bond default, a development that likely will heighten investor scrutiny on government support of the beleaguered sector. Most Read from BloombergMusk Says Putin Can’t Lose in Ukraine, Opposes Senate BillWall Street Caught Off Guard by ‘Sticky’ CPI Signs: Markets WrapStanChart Weighs Break Up of Corporate, Investment BankPutin Seeks Revenge on a World Order He Once Wanted
(Bloomberg) China South City Holdings Ltd., partially owned by the southern city of Shenzhen, awaits a creditor vote result that would allow the developer to extend bond interest payment deadlines or risk becoming the latest defaulter in the beleaguered industry.Most Read from BloombergApple Races to Tweak Software Ahead of Looming US Watch BanApple to Halt US Sales of Smartwatches After Patent LossTrump Should Be Barred From US Presidency, Colorado Court SaysWhat If Putin Wins? US Allies Fea
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