Creditor closes in on Hui Ka-yan's TST property

Staff reporter and Reuters

China Evergrande (3333) founder Hui Ka-yan faces a petition requiring him to hand over a property in Tsim Sha Tsui to repay part of his 5.3 billion yuan (HK$5.7 billion) debt to Hexin Hengju (Shenzhen) Investment Holding Center.

Hexin has filed a petition to the High Court, requesting Hui to surrender his flat at Cheung King Mansion on Austin Road and to sell the property under the court's direction to partially repay his debt.

Hexin said the Hong Kong court had earlier ordered Hui to repay the debt within a certain period, adding that the company has the right to apply for the possession and sale of Hui's properties if he fails to.

Meanwhile, the hearing on a liquidation case against Chinese property developer Shimao Group (0813) was adjourned to July 31, as the company extended again the deadline for creditors in relation to a debt restructuring plan, the company said in a filing yesterday.

The adjournment was made by a Hong Kong court following a consensual application for the move by Shimao and the petitioner, state-owned lender China Construction Bank (Asia), it said.

It said Shimao and its advisers "are actively advancing discussions with creditors" regarding its offshore debt restructuring proposal, adding that the firm has further extended the deadline for the early consent fee - an amount payable to creditors as an incentive to support the restructuring - to July 31.