China Evergrande said that it would “vigorously” oppose a winding-up petition filed by a small creditor as the world’s most indebted property developer comes under pressure from investors cut out of its restructuring process.
The petition was filed with Hong Kong’s High Court by investment holding group Top Shine Global and is related to an obligation worth HK$862.5mn (US$110mn), Evergrande said on Tuesday.
The winding-up petition, the first such petition disclosed by Evergrande but the third targeting a Chinese developer that has defaulted, is the latest sign of growing agitation among the company’s small creditors. They are working to build leverage to use in negotiations with Evergrande during its opaque debt restructuring process, according to a person familiar with such legal actions.