US$1.1b loan to be converted into shares

Agencies and staff reporter

Country Garden's (2007) controlling shareholders intend to convert half of a shareholder loan with a principal of US$1.1 billion (HK$8.58 billion) into shares of Country Garden and half into 60 percent of the shares in Forest City held by the developer, according to mainland media.

Forest City in Malaysia is co-developed by Country Garden and Malaysian developer KPRJ and the Chinese developer indirectly holds a 60 percent stake in the project.

Meanwhile, China Evergrande (3333) said yesterday that a court in Hong Kong had ordered one of its key offshore units to be wound up, the latest in a slew of legal victories for the embattled developer's liquidators.

The liquidators had filed a winding-up petition against company subsidiary CEG Holdings BVI in September, in a bid to recover funds from the debt-laden property company that defaulted in 2021 and triggered China's real estate market crisis.

In other news, Shimao (0813) faced another liquidation petition in Hong Kong, one month after its last winding-up case was dismissed, adding new uncertainty to the defaulted builder's restructuring.

The winding-up petition against Shimao, known for its five-star hotel developments, was filed by CPYM Link Investment, and a hearing is scheduled for March 19, according to Hong Kong's judiciary website.

But its property management unit Shimao Services (0873) said the winding-up petition against its parent has no material impact on its operations.