(Bloomberg) – Creditors of Chinese developer Xinyuan Real Estate Co Ltd. are seeking to force the company to go bankrupt in New York to collect bonds payable last year, according to a court application.
The creditors said in an involuntary Chapter 11 petition filed Monday night that bondholders – Cithara Global Multi-Strategy, Mars Partner Limited and Star Freight & Trading Co. – owed $65.8 million.
In recent years, Xinyuan is one of many Chinese developers that have been shocked by financial turmoil in recent years. According to the bankruptcy filing, the company missed interest payments in 2022 and later failed to repay the $170 million bond that expired in January 2024. It conducted a US dollar debt exchange in June 2023 and hired Alvarez and Marsal as restructuring consultants.
Creditors said in their filings that the company has assets in the U.S. that can be used to repay bonds. Last year, Xinyuan broke a real estate subsidiary called Hudson 888 owner, saying it owed creditors between $100 million and $500 million.
Under the U.S. Bankruptcy Act, if a company fails to repay its debts on time, the creditor can ask the judge to put the company under the supervision of the court. The company can then fight the petition, or accept bankruptcy and attempt to reorganize.
Representatives of the company did not immediately return an email seeking comments.
The bankruptcy case was Xinyuan Real Estate Co. Ltd of the US Bankruptcy Court in the Southern District of New York 25-10745.
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