China’s Real Estate Sector Takes Another Hit
Guangdong Adway Construction, a company specializing in interior and exterior decoration and design services, has recently filed for bankruptcy in a Shenzhen court. This move comes as a result of the company’s inability to repay its debts within the challenging real estate sector of China.
In a late Monday filing, Adway stated that it has applied to the Shenzhen Intermediate People’s Court for a restructuring plan. The aim is to reduce the debt burden and ultimately improve the company’s operations.
It is evident that Adway is not alone in facing these difficulties, as the weak property sector continues to impact various businesses in China. In fact, on the same day, China Oceanwide Holdings, a property investment company, announced that a Bermuda court has ordered its winding-up and appointed liquidators.
As of May, Adway’s outstanding debts amounted to 668.53 million yuan ($91.4 million). To address this financial crisis, the company’s debt restructuring plan involves selling overseas assets.
Adway emphasized that it maintains significant reorganizational value due to its possession of high-quality assets, strong brand recognition within the industry, and comprehensive qualifications and licenses in the domestic construction sector. However, the acceptance of Adway’s bankruptcy restructuring application by the court remains uncertain.
Currently, the shares of Adway remain suspended in Hong Kong.