The accusations involve the terms of an agreement from 2017 for UOB and other lenders to grant loan facilities of up to HK$10 billion (US$1.3 billion) to group entity Adventure Success Ltd. The terms were meant to secure the obligations of the unit, which holds a private residential land development project in Hong Kong’s Kowloon area.
Distressed Chinese developer Shimao Group Holdings and four units have been sued by United Overseas Bank in Hong Kong, adding to broader signs of growing investor impatience amid the nation’s worsening property debt crisis.
UOB alleged that Shimao and the group entities breached terms of certain loan and security agreements, by purportedly re-allocating loans and allotting shares between the entities without the Singapore bank’s consent, according to a writ in the High Court of Hong Kong dated July 12.
