China Citic Bank files HK$652 million lawsuit against builder Logan

China Citic Bank International has filed a HK$652 million lawsuit against developer Logan (3380) over a loan the builder defaulted on in 2023, according to a court document seen by Bloomberg News.

Citic’s claim relates to the loan, which has HK$588 million of principal outstanding and HK$64 million of interest, as well as other costs, according to a writ filed in Hong Kong’s High Court. Logan obtained the loan from China Citic Bank in 2021 and defaulted in October 2023.

The lawsuit adds to the challenges Logan faces as it works to restructure debt amid a yearslong property crisis. Once China’s 20th-biggest builder by sales, Logan said last month that creditors holding over 80.8 percent of its US$6.21 billion (HK$48.4 billion) of offshore debt have signed an agreement in support of its restructuring plan.

The company, which has more than 150 residential developments in China, this week proposed to bondholders a preliminary debt plan to restructure around US$3 billion of onshore debt.

Bloomberg