China Oceanwide Holdings, a Beijing-based private developer, announced on Monday that the bankrupt company would be liquidated by a Bermuda court, Kenji Kawase reported for Nikkei Asia.
China Minsheng Banking Corp. filed a lawsuit against Oceanwide Holdings Co. and its de facto controller, property tycoon Lu Zhiqiang, over a 7 billion yuan ($1 billion) loan dispute in January this year. I Photo: Oceanwide Holdings
Trading of the company's Hong Kong-listed shares was suspended on Monday morning due to the court's decision and will remain suspended until further notice, as stated in the filing to the city's exchange.
Even its rival, Aoyuan, was affected as its shares plummeted by 70%.
Zhang Ziyu and Liu Ran reported for Caixin on January 24, 2023, that China Minsheng Banking Corp., the country's largest privately owned lender by assets, had filed a lawsuit against Oceanwide Holdings Co. and its de facto controller, property tycoon Lu Zhiqiang, over a 7 billion yuan ($1 billion) loan dispute.
The bank's Beijing branch initiated the lawsuit against Oceanwide, Lu, and two property developers based in the central Chinese city of Wuhan.
The developers, Wuhan Centre Building Development Investment Co. Ltd. and Wuhan CBD Co. Ltd. failed to repay debts of 3.97 billion yuan and 3.05 billion yuan, respectively, as reported by China Minsheng in a stock exchange filing on Friday.