Country Garden has hired Kroll to carry out a liquidation analysis ahead of a court hearing in mid-May, according to three sources, as the embattled Chinese developer pushes ahead with its offshore debt restructuring plan, reports Reuters. Kroll, the New York-headquartered financial advisory firm, is expected to conduct an independent business review of Country Garden before projecting a recovery rate for the developer’s creditors under a liquidation scenario, according to the sources with direct knowledge of the matter.
Country Garden, China’s biggest private developer, received a liquidation petition last month for non-payment of a $205 million loan and is facing the first court hearing in the case on May 17.
In restructuring cases, companies must conduct an independent liquidation analysis to assess potential recovery rates for creditors for debt restructuring schemes, as well as for liquidation court hearings, legal experts said.