Bank of New York Mellon sues to liquidate Sino Ocean for US$400 million debt and interest
- The developer is the guarantor of a 3.25-per cent note due in 2026 issued by its unit Sino-Ocean Land Treasure IV Limited, and is liable for US$400 million
The Bank of New York Mellon has sued in Hong Kong to liquidate the Beijing developer Sino-Ocean Group, becoming the latest in a string of cases in the city’s courts to push for financial restructuring in China’s debt-laden property industry.
The developer is the guarantor of a 3.25-per cent note due in 2026 issued by its unit Sino-Ocean Land Treasure IV Limited, and is liable for US$400 million in debt and accrued interest. Sino-Ocean received a petition from the bank’s London branch, the developer said in a stock exchange filing.
Sino-Ocean said it will “oppose the petition vigorously” and work closely with its financial and legal advisers to put together a plan to repay its creditors.
“The company is now at an advanced stage of discussion with the co-ordination committee of lenders of the existing syndicated loans of the group and expects that an agreement on the principal terms of the holistic debt management arrangement will be reached in due course,” it said.
Sino-Ocean is joining a growing list of Chinese property developers facing liquidation lawsuits, after a nationwide deleveraging campaign begun in late 2020, sending home sales plunging and causing severe liquidity issues for these home builders.
