(Bloomberg) -- The parent of Chinese developer Redsun Properties Group Ltd. has received a winding-up petition in a Hong Kong court, joining a growing list of the country’s distressed firms facing legal threats in the city.

The court is scheduled to hold a hearing of the petition against Hong Yang Group Co. on March 27, according to the city’s judiciary website. Serica Agency Ltd. is the other involved party in the case. 

Hong Yang is the parent of Redsun Properties Group Holdings Ltd., which controls Hong Kong-listed Redsun Properties Group Ltd. Both Hong Yang and Redsun Properties Group Holdings are the guarantors of a defaulted $275 million dollar bond that was originally due in 2022, Bloomberg-compiled data show. 

Creditors frustrated by the prolonged restructuring progress of some Chinese companies have increasingly turned to Hong Kong courts to recoup their losses. At least three Chinese developers or their units have received liquidation orders from the city’s courts.

The winding-up petition case number is HCCW 42/2024.

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