BRIEF: Creditor files winding up petition for LVGEM
A creditor of LVGEM (China) Real Estate Investment Co. Ltd. (0095.HK) has filed with the High Court of Hong Kong to wind up the company, the struggling real estate developer said on Wednesday. Keystone Holdings filed the petition dated Feb. 4 in connection with certain financial obligations guaranteed by LVGEM in the principal amount of about $210,000 plus accrued interest, according to a company statement.
LVGEM said its board believes that the petition is without merit and added it will seek legal advice and take all necessary actions to protect its legal rights. The company encourages all of its stakeholders and investors to maintain their confidence in the company’s efforts to reach a restructuring solution for its offshore debt.
LVGEM recorded a loss of 1.53 billion yuan ($2.1 billion) in the first half of last year, ballooning 177.5% from the same period in 2023, according to its midyear report. During the six-month period, its total borrowings reached 35.73 billion yuan, with current liabilities of 17.05 billion yuan, and bank balances and cash totaling approximately 4.27 billion yuan. Its debt-to-equity ratio stood at 113.1%.
LVGEM shares opened down 3% at HK$0.33 on Thursday. The stock is down around 73% from its recent peak last October.
By Lau Chi Hang
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