A Beijing-based creditor of Chongqing Sincere submitted a bankruptcy petition against the company to the No. 5 Intermediate People’s Court in Chongqing, according to a July 5 filing posted on 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.
The case is still at an application stage, Chongqing Sincere said in a written reply to Bloomberg, adding it doesn’t affect business in its subsidiary property projects. Sincere Property Holdings said it respects credit holders’ wishes and its other businesses remain normal. Representatives for CDL weren’t immediately able to comment.
A restructuring would close a painful chapter for CDL, which posted a record annual loss last year after writing off almost all of its $1.9 billion investment in Chongqing Sincere. CDL Chief Executive Officer Sherman Kwek once hailed the 2020 deal as “game-changing” before vowing not to inject further funds until the unit returned to health.
