The property management arm of indebted mainland Chinese real estate developer Redsun Properties Group said on Friday that more than 72 per cent of its shares had been seized by receivers, after its controlling shareholder defaulted on a pledge.
The holding company of Redsun Services Group had pledged about 302 million shares of the Hong Kong-listed firm as collateral for notes issued by Hong Seng Limited, an affiliated company, as part of the developer’s 2024 debt restructuring plan, according to a filing with Hong Kong Exchanges and Clearing.
On Tuesday, these shares – representing around 72.8 per cent of Redsun Services Group’s total issued share capital – were seized by receivers.
Both Redsun Services Group and its holding company are seeking legal advice regarding the matter. The company said the seizure had “no significant impact on the business operation, financial conditions and solvency of the company”.
Redsun Properties Group was founded in Nanjing, capital of Jiangsu province, in 1999. It has developed over 200 projects in more than 60 cities across mainland China.
In 2018, it was listed in Hong Kong. Two years later, Redsun Services Group was listed as well.