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Two creditors of real estate developer Guangzhou R&F Properties have applied to a Chinese court for the developer to be placed in bankruptcy and restructured, according to notices in an official database.
While many Chinese developers have faced legal action by creditors for debt defaults, such bankruptcy restructuring requests to courts in mainland China are uncommon. Many of them, however, face winding-up petitions in Hong Kong and overseas jurisdictions.
Guangdong Xiangyi Trading Co and Guangzhou Guangfeng Concrete Ltd filed the bankruptcy restructuring applications in the Guangzhou Intermediate People’s Court, without providing further details.
In response, R&F Properties said in a statement that the dispute was over 20 million yuan ($2.79 million) worth of commercial paper.
The company was not in insolvency and would seek legal measures to resolutely oppose the application, R&F noted, adding that it hasn’t received any relevant court document relating to the application.
Chinese news media, citing company database portals, have reported that the courts have so far ordered the freezing of a dozen assets of the developer.