A subsidiary of Chinese developer Xinyuan Real Estate Co. Ltd. is trying to avoid paying its sole secured creditor by filing for bankruptcy, a pair of lenders argued.
The lenders say Hudson 888 Owner LLC lacked the authority to file for Chapter 11 protection based on its own corporate governance documents. The bankruptcy was filed amid China’s real estate debt crisis.
The lenders argued that Hudson’s “bad faith” Chapter 11 should be dismissed, or relief should be granted from an automatic stay, so that it can face a New York state court suit over contractual obligations, according to a Wednesday ...
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