Chinese developer Logan Group Co. Ltd. suffered an unexpected setback just days after progress on its restructuring plan, as bank creditors split with bondholders and threatened to liquidate two key units, reports Caixin.
A lawyer representing the banks said the lenders may substitute the bondholders in their original winding-up petition at a Hong Kong court hearing Monday, saying Logan hasn’t provided information requested. A lawyer representing the bondholders told the court they are seeking to dismiss the petition after signing an agreement with Logan.
Judge Anthony Chan of the court said he will adjourn the case for four weeks to give the banks more time to consider whether to replace the bondholders as the case’s new petitioner. Chan said the latest decision is “very exceptional” after several adjournments and the lawsuit is dragging “too long.”