Singapore Billionaire Kwek Leng Beng’s City Developments To Limit Exposure In China Unit Amid Bankruptcy Claim

Singapore Billionaire Kwek Leng Beng’s City Developments To Limit Exposure In China Unit Amid Bankruptcy Claim

Kwek Leng Beng, chairman of City Developments, speaks during a news conference in Singapore, on ... [+] August 11, 2017. City Developments"”controlled by billionaire Kwek Leng Beng"”said Thursday it will not support the continuing financial obligations of its cash-strapped Chinese subsidiary Sincere Property Group, which faces a bankruptcy claim by one of its creditors. Beijing Yi He Mercury Investment Co., a creditor of Sincere Property, has filed a bankruptcy claim against the Shanghai-based real estate developer at Chongqing No. 5 Intermediate People's Court in China on July 5, City Developments said in a statement to the Singapore Exchange. "As announced previously, the group stated that it has ring-fenced its current financial exposure to its investment in Sincere Property and it will not support the continuing financial obligations of Sincere Property," City Developments said. "Despite the bankruptcy proceedings, the group will continue to strenuously protect its position and limit further exposure." City Developments had written off S$1. 8 billion ($1. 3 billion) on its investments in Sincere Property, impairing 93% of its total investments in the Chinese developer. As a result of the write down, Singapore's second-largest builder by market value posted a S$1. 9 billion net loss in 2020, its