Evergrande opposes winding- up petition filed by Top Shine Global

Debt- stricken China Evergrande Group said in a filing at Hong Kong stock exchange on Tuesday that it opposes the winding- up lawsuit filed by Top Shine Global, as Evergrande has been actively communicating with its creditors on an offshore debt restructuring plan.

The response came after a winding- up petition against the China Evergrande dated June 24 was filed by Top Shine at the

High Court of the Hong Kong Special Administrative Region in connection with a financial obligation for the amount of HK$ 862.5 million ($ 109 million).

The firm will oppose the petition vigorously, Evergrande said. The property developer does not expect that the petition will impact the company’s restructuring plans or timetable, it added.

Top Shine Global is an investor in Evergrande’s unit

Fangchebao ( FCB). It is the first winding- up petition known to have been filed against Evergrande.

Reuters reported that “investment holding firm Top Shine Global bought 0.46 percent of FCB, a Chinese online real estate and automobile marketplace, last March for HK$ 750 million, as Evergrande sold 10 percent of the unit to 17 investors for a total $ 2.10 billion ahead of an IPO.”

If the IPO did not materialize by April 8 this year, Evergrande would have to repurchase the shares at a 15 percent premium, Reuters reported.

Evergrande said the company has been actively communicating with its creditors to push forward with its offshore debt restructuring plan. It expects to announce a preliminary restructuring plan to resolve its offshore debt before the end of July.

The issue shows that the investors still have ongoing disputes over Evergrande’s settlement of its debts, Yan Yuejin, research director at Shanghai- based E- house China R& D Institute, told the Global Times on Tuesday, adding that although it has a slim chance of success, it will put higher pressure on Evergrande.