Bank of New York Mellon sues to liquidate Sino Ocean for US$400 million debt and interest

The Bank of New York Mellon has sued in Hong Kong to liquidate the Beijing developer Sino-Ocean Group, becoming the latest in a string of cases in the city’s courts to push for financial restructuring in China’s debt-laden property industry.

The developer is the guarantor of a 3.25-per cent note due in 2026 issued by its unit Sino-Ocean Land Treasure IV Limited, and is liable for US$400 million in debt and accrued interest. Sino-Ocean received a petition from the bank’s London branch, the developer said in a stock exchange filing.