(Bloomberg) -- A court hearing on a winding-up lawsuit against Chinese developer Sunac China Holdings Ltd. was adjourned to June, providing the firm more leeway to craft a debt-restructuring plan.

The case has been adjourned to June 14, 2023, according to a Hong Kong court decision Wednesday morning. 

The country’s 10th-largest builder by contracted sales had disclosed the winding-up case was filed in September by Chen Huaijun. Sunac said he’s allegedly owed $22 million in principal plus interest on senior notes.

The lawsuit is part of the increasingly common legal battles between Chinese builders and impatient creditors in the wake of record offshore defaults in 2022. An offshore unit of Yango Group Co. received a winding-up order last month and China Evergrande Group has a Nov. 28 court date regarding a petition against it. Meanwhile, Chinese officials have readied liquidity support for developers as another round of debt-payment misses the past few weeks.

Sunac said in September that it planned to “vigorously” oppose the winding-up petition and keep active communication with Chen while continuing work with advisers “to formulate a viable restructuring plan” by the end of this year. The company also planned to remain engaged with an ad-hoc group of offshore creditors that includes large institutional investors. 

In addition, the developer is reportedly taking steps to address its onshore debt. Chinese local news outlet The Paper, citing unidentified sources, said Tuesday that a Sunac unit is planning to restructure 15.4 billion yuan ($2.2 billion) of domestic bonds and asset-backed securities. Trading of onshore notes was suspended starting Monday amid what the unit called “uncertainty in significant matters.”

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