Another real estate developer in China filed for bankruptcy19 April, 2012, 12:04. Posted by Zarathustra
Tags: Bankruptcy, Propery
We mentioned that one real estate developer in Hangzhou has filed for bankruptcy, and expecting more to come.
So just now, we have learned that one developer in Guangdong has also gone bust. STCN.com is reporting that one small developer in Shunde called “Guangdeye” is filling for bankruptcy, which is the first case in Guangdong province. The company is said to be in series of legal battles since its founder passed away in 2008. In 2001 along, the company is involved in 28 court cases related to bonds, debts, sales and purchase contracts and rental contracts. For now, the assets of the company are apparently less than liabilities, thus it is filing for bankruptcy.
Although the cooling real estate market might not have contributed 100% to this case of bankruptcy, we are nevertheless expecting real estate prices to continue to fall, and that will continue to put tremendous pressure on real estate developers. Thus we are still expecting more to come.