Chinese real estate developer Guangzhou R&F Properties said on Tuesday that its subsidiary, Trillion Glory, received a winding-up petition from a Singapore-based private equity fund due to a loan default.
The petition was filed on Monday in a Hong Kong court by Seatown Private Credit Master Fund, which holds an 18% stake in a loan totaling $613.66 million.
Cash-strapped R&F is the latest Chinese property developer to face winding-up litigation from creditors. Last month, state-backed Sino-Ocean Group announced it was facing a winding-up petition from Bank of New York Mellon, and earlier this year, China Evergrande Group was ordered to be wound up.
R&F stated in a document that this petition will have no substantive impact on its business.
R&F noted that the loan is secured by 68 hotels and an office building in China, indirectly held by the company. Secured creditors can choose to enforce the collateral rather than filing for liquidation, as liquidation would destroy the company’s value and reduce creditors' recovery.
R&F is one of the loan's borrowers, and its other subsidiary, R&F Properties (HK) Company Limited, is one of the guarantors.
The petition will be heard in the High Court on September 25.
Early on Tuesday, shares of the Guangzhou-based developer rose 1.2%, while the Hang Seng Mainland Properties Index fell 4.9%.
Earlier this year, R&F initiated its second bond exchange, swapping its $5.7 billion in bonds to help the company avoid loan defaults and reduce its debt burden.
