Country Garden Gets Winding-Up Petition in Hong Kong

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Guangdong-based Country Garden overtook Evergrande to become the epicenter of the China’s property crisis when it defaulted on a dollar bond in October. Photo: Bloomberg

(Bloomberg) — Country Garden Holdings Co. Ltd.’s debt crisis is entering a new chapter, after a Hong Kong court received a creditor’s petition to liquidate the Chinese developer, a move that adds pressure on the defaulter to quicken its restructuring efforts.

The first hearing date is scheduled for May 17 at Hong Kong’s High Court, after Ever Credit Ltd. filed its so-called winding-up petition dated Tuesday. Country Garden failed to make payments on a term loan facility of about HK$1.6 billion ($204 million), plus accrued interest, to the lender, according to an exchange filing.