Distressed China Builder Shimao Sued by United Overseas Bank

Luxury builder Shimao, which ranked as China’s 22nd-biggest by sales in the first half of this year, was once considered one of the country’s stronger developers.

(Bloomberg) — Distressed Chinese developer Shimao Group Holdings Ltd. and four units were sued by United Overseas Bank Ltd. in Hong Kong, adding to broader signs of growing investor impatience amid China’s worsening property debt crisis.

United Overseas Bank (UOB) alleged that Shimao and group entities breached terms of certain loan and security agreements by purportedly reallocating loans and allotting shares among the entities without the Singapore bank’s consent, according to a writ in the High Court of Hong Kong dated July 12.