KWG Group Faces Insolvency Proceedings
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FastNews — Shares of KWG Group Holdings Ltd. (1813.HK) plummeted over 20% on Thursday following the announcement of a winding-up petition filed by Shandong Sunlight Xin Tiandi Micro-finance Company Limited. The petition, filed on August 11, 2025, alleges an outstanding debt of approximately RMB 642 million plus accrued interest of about RMB 136.2 million, totaling roughly RMB 778 million.
The first hearing for this case is scheduled for October 22, 2025, and as of now, no winding-up order has been granted by the court. Investors should note the legal implications of the petition date, such as potential voiding of share transfers made after August 11 unless validated by the court.
The reasons for the petition stem primarily from the failure of KWG Group to settle the guaranteed debt owed to Shandong Sunlight Xin Tiandi. The company’s net debt-to-equity ratio soared to 789.6%, and approximately 17.6 billion yuan of its borrowings are due for repayment within one year.
KWG Group, a prominent player in the real estate sector, opened flat on Thursday but then plunged over 20%, hitting an 11-month low. This decline reflects market concerns about the company's financial stability amid this large debt dispute.
It is worth noting that KWG Group Holdings Ltd. may apply for a validation order with Hong Kong's High Court. The outcome of this application could potentially impact the company's future.
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[1] KWG Group Faces Winding-up Petition, Stock Plunges Over 20% [2] KWG Group's Shares Plunge on Winding-up Petition [3] Winding-up Petition Filed Against KWG Group: What Investors Need to Know [4] KWG Group: What You Need to Know About the Winding-up Petition [5] KWG Group's Financial Woes Deepen: Winding-up Petition Filed by Shandong Sunlight Xin Tiandi
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