Logan Group Co. shares fell Tuesday morning in Hong Kong, after the company became the latest Chinese property developer to receive a winding-up petition.
Logan Group’s stock slid 12% to 0.44 Hong Kong dollar (US$0.06), taking its year-to-date slump to 93%.
The Shenzhen, China-based company said in a late Monday filing that it and two subsidiaries have received a winding-up petition filed by a trustee representing some bondholders at courts in Hong Kong and the Cayman Islands.
The developer said it will “seek legal measures to oppose the petitions, and take all necessary actions to protect its legal rights.”
Logan Group also said it has “actively engaged” offshore creditors in dialogue and will continue doing so to “reach a consensus on the holistic liability management solution as soon as practicable.”
This is the latest sign of woes facing Chinese developers as they struggle with a prolonged sector downturn amid weak home-buyer sentiment. The country’s most indebted developer, China Evergrande Group, said on the weekend that receivers sold an undeveloped land in Hong Kong, which will result in it taking a loss of about US$770 million.