Powerlong unit petitioned to liquidate over non-payment of senior notes

Powerlong Real Estate (1238) said its subsidiary received a liquidation petition in the British Virgin Islands after its restructuring plan failed to gain enough support from creditors last month.

The Chinese developer noticed last Friday that a winding-up petition was filed against its wholly-owned subsidiary Powerlong Real Estate (BVI) by a group of creditors led by PAG, according to an exchange filing on Sunday.

The application concerned non-payment of the US$500 million (HK$3.9 billion) 6.25 percent senior notes due on August 10, 2024, which were issued by Powerlong Real Estate and guaranteed by its unit.

The applicants collectively hold US$198.76 million in the outstanding principal amount of these notes, the filing said.

The hearing for the liquidation application is scheduled to be held on April 28, the developer said, adding that it will seek legal measures to oppose the application.

Powerlong reiterated its determination and commitment to pursue a holistic solution that ensures sustainable operations of the group and safeguards the interest of all stakeholders, while calling for the patience, understanding and support from the creditors, the filing read.

STAFF REPORTER