China Builder Logan’s Restructuring Hits Snag as Lenders Revolt
- Banks may replace bondholders in winding-up petition
- Bondholders seek to drop case after signing deal with Logan
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Chinese developer Logan Group Co. suffered an unexpected setback just days after progress on its restructuring plan, as bank creditors split with bondholders and threatened to liquidate two key units.
The bank creditors weren’t given requested information from Logan and may replace bondholders in their winding-up petition, the banks’ lawyer said at a Hong Kong court hearing Monday. Meanwhile, bondholders are seeking to dismiss their petition after signing an agreement with Logan, their lawyers told the court.