Chongqing Sincere Yuanchuang Industrial Co, a cash-strapped Chinese developer owned by Singapore’s richest property family, may undergo a court-led restructuring after a bankruptcy application was filed against it, according to people familiar with the matter.
Sincere Property Holdings, the second-largest shareholder of Chongqing Sincere, is preparing to work with stakeholders and creditors on a restructuring of the builder, said the people, asking not to be identified discussing private information. Singapore’s City Developments, owned by the billionaire Kwek family, has a 51% stake in the developer.
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.
