The Company strongly opposes the Petition and will seek legal advice and take all necessary actions to actively and properly defend it with the team of advisors.Zhongfang Daily reporter Zeng Dongmei reported from Guangzhou
On February 28, Country Garden released an inside information, revealing that it was learned that a subsidiary of Kingboard Group had filed a winding-up petition against the company in the High Court of the Hong Kong Special Administrative Region on February 27, involving an unpaid term loan of about HK$1.6 billion in principal and accrued interest.
In this regard, Country Garden said that the company's debt amount related to Kingboard Group accounts for a very low proportion of the overall overseas interest-bearing liabilities, and the aggressive action of a single creditor will not have a significant impact on the delivery of buildings, normal operation and the overall restructuring of overseas debts. Referring to other cases of defaulting listed real estate companies in the industry, it is common for individual creditors to apply to the Hong Kong court for the winding-up of their companies. The Company strongly opposes the Petition and will seek legal advice and take all necessary actions to actively and properly defend it with the team of advisors. ”
It is understood that since the announcement that it could not repay all its overseas debts as scheduled, Country Garden has hired financial and legal advisers to assist in assessing its capital structure and liquidity position, and formulating an overall solution. At present, an effective communication mechanism has been established with the representative group of major overseas creditor groups, and the overall restructuring of overseas debts is being actively and orderly promoted. "It is the firm belief that the winding-up of a company is a lose-lose situation for all parties. The Company will continue to actively negotiate, communicate and collaborate with major offshore creditor teams to seek the best solution. ”
Kingboard Group is principally engaged in the manufacture and sale of copper clad laminates, printed circuit boards, chemical products, magnetoelectric products, real estate development and investment, and investment business. In December 2021, Kingboard Group's Eternal Credit, a subsidiary of Kingboard Group, provided Country Garden with a sum of 18HK$800 million term loan with the final instalment agreed to be repaid in December 2023.
Country Garden announced in early August 2023 that there was a phased flow pressure. In order to alleviate the debt repayment pressure, on August 30, 2023, Country Garden announced the placement of about 35.1 billion shares, 0.0 per shareHK$77 to offset the amount owed to Eternal Credit under the Facility Agreement of approximately 3HK$1.9 billion. Country Garden is also required to repay the remaining amount of this instalment in cash.
On October 10, 2023, Kingboard Group issued an announcement stating that it failed to repay 15HK$9.8 billion and issued a statutory demand for repayment of certain amounts due and payable.
On February 19, Kingboard Group revealed in the profit police announcement that it expects to record a net profit of no less than 20 in 2023HK$200 million, down no more than 45% year-on-year, due in part to the provision for credit losses on Country Garden's borrowings.