Chinese property firm receives liquidation order in Bermuda

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A Chinese property investor that has struggled with several US projects faces court-ordered liquidation as a Bermuda court issued a winding-up order against the firm.

China Oceanwide Holdings disclosed the order in a filing on Monday with Hong Kong’s stock exchange. Liquidators have been appointed and the company’s shares listed in the city have been suspended.

The winding-up petition was filed in June 2022 and involved US$175 million of loan principal that the petitioner said was not paid, Oceanwide said at the time. The financing involves a pledged New York property and secured shares.

At least three Chinese developers have been ordered wound up by courts in Hong Kong amid the country’s property debt crisis, though a similar effort involving Oceanwide was dismissed in February. A new petition was filed against the firm last month.

The company has dealt with myriad difficulties in the US after making US$3.5 billion of real estate investments there.

Lenders last year seized control of a New York property that Oceanwide planned to develop one of lower Manhattan’s tallest towers after mortgage payments were not made.

The firm said 18 months ago it was trying to generate cash by selling properties amid efforts to revive a massive Los Angeles project that has been frozen in mid-construction for years.

Oceanwide faces $220 million in lawsuit liabilities on the hotel and residential complex, according to a September 2022 filing.

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