Kwek Leng Beng, chairman of City Developments, speaks during a news conference in Singapore, on … [+]
Nicky Loh/Bloomberg
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,…