Business
Shanghai Court Commands SRE Group to Sell Majority Stake in Venture to Repay Massive Debts: A Result of China’s Struggling Real Estate Sector
A court in China has commanded real estate developer SRE to offload the majority of their shares in a Shanghai business in order to settle loan debts. This follows the company's inability to repay debts amounting to 4.45 billion yuan (approximately US$627 million), as stated in a Hong Kong regulatory document.
A court in Shanghai has mandated that Chinese real estate firm, SRE Group, dispose of its primary stake in a partnered business. This comes after SRE's inability to reimburse bank debts amounting to 4.45 billion yuan (equivalent to US$627 million), as disclosed in a statement to the Hong Kong stock market.
SRE, a division of the troubled corporation China Minsheng Investment Group, announced that four of its sub-units, which together owned 51% of Shanghai Jinxin, failed to meet their responsibilities as per a court mandate to repay loans. Additionally, they were each instructed by the court to pay an "enforcement fee" of 4.52 million yuan.
The credit was sourced from a 5 billion yuan consortium organized by the Industrial & Commercial Bank, Agricultural Bank of China, China Construction Bank, and Shanghai Pudong Development Bank. According to the document, the debtors have been unable to make payments on the loan since March 2022.
The directive given by the Shanghai Financial Court marks another instance of legal interference requested by lenders, as an increasing number of troubled mainland property developers find it difficult to sell properties and adhere to their repayment timelines.
At present, SRE is in discussions and negotiations with lenders and consulting legal experts to limit any potential legal outcomes or repercussions, as stated in their disclosure on Thursday.
10:57 AM
Ups, downs, and debts: Did China's real estate market crash?
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.