Singapore Property Dynasty Sees Woes Piling in China Unit

Singapore’s richest property dynasty pledged to continue to limit its exposure to its cash-strapped China unit, which is now facing a bankruptcy claim, Bloomberg News reported. City Developments Ltd. said that it has “ring-fenced its current financial exposure to its investment” in Chongqing Sincere Yuanchuang Industrial Co. and “will not support” the continuing obligations of the Chinese developer. “Despite the bankruptcy proceedings, the group will continue to strenuously protect its position and limit further exposure,” CDL said in a statement filed to the Singapore Exchange on Thursday. The company’s shares fell as much as 4.3% in Singapore trading. Bloomberg earlier reported that Sincere may undergo a court-led restructuring after a bankruptcy application was made against it by a Beijing-based creditor. Beijing Yi He Mercury Investment Co. filed the petition to the No. 5 Intermediate People’s Court in Chongqing on July 5, according to the National Enterprise Bankruptcy Information Disclosure Platform. If the local court accepts the application, a formal process would be triggered leading to either restructuring or liquidation, or a settlement between creditors and the company. Read more.
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