Chinese Developer Shimao Receives Wind-Up Petition in Hong Kong

Defaulted Chinese developer Shimao Group Holdings Ltd. is facing a demand to liquidate from creditor China Construction Bank (Asia) Corp., one of the most prominent examples yet of a state-backed bank trying to claw back money from a distressed developer.

The so-called winding-up petition was filed on April 5 and is related to a financial obligation in the amount of HK$1.6 billion ($204 million), according to a stock exchange filing from Shimao, whose landmark projects included five-star hotels in Shanghai. The developer said it will oppose the petition and continue to work toward an offshore restructuring that maximizes value for its stakeholders.