Guangzhou R&F says Chinese court rejects bankruptcy restructure demand

Guangzhou R&F says Chinese court rejects bankruptcy restructure demand
FILE PHOTO: The logo of Guangzhou-based property developer R&F Properties is pictured at a strategic cooperation signing ceremony in Beijing, China July 19, 2017. Picture taken July 19, 2017. REUTERS/Jason Lee

BEIJING :Guangzhou R&F Properties said on Friday a Chinese court has rejected bankruptcy restructuring demand made by some creditors as no evidence of the property developer’s insolvency was found.

The developer’s 2021 and 2022 financial reports showed it had more than 110 billion yuan ($15.41 billion) in assets, China Securities Journal said, citing a response from R&F.

Creditors Guangdong Xiangzheng Trade and Commerce and Guangzhou Guangfeng Concrete had applied to the Guangzhou Intermediate People’s Court for winding-up reorganisation against R&F, a rare court tactic against a mid-sized firm of its kind.

While many developers, including R&F, have faced legal action by creditors for non-repayment, such restructuring requests to Chinese courts are uncommon, as government officials usually step in to mediate, developers and lawyers said.

The dispute was over 20 million yuan ($2.80 million) worth of commercial paper, R&F said in a statement on Thursday, adding it was not in insolvency and would seek legal measures to “resolutely” oppose the application.

($1 = 7.1369 Chinese yuan renminbi)


Source: Reuters