CDL - Remedies for a Beleaguered Chinese Investment and Belligerent JV Partner

Forensic Analyst

Jason Yap, CFA

Forensic Accounting

<p>On 10 September 2021, <a href="https://www.smartkarma.com/entities/city-developments-ltd" target="_blank" data-smartkarma-citation="entities:57:1" rel="noopener">City Developments (CIT SP)</a> announced plans to exit Sincere Property ("SP") through a series of transactions including, amongst others, divesting its remaining stake in Sincere Property, exiting director and officer appointments, and continuing to protect its creditor rights under the mainland entity's possible PRC bankruptcy proceedings. </p><p>In <a href="https://www.smartkarma.com/insights/cdl-remedies-for-a-beleaguered-chinese-investment-and-belligerent-jv-partner" target="_blank" data-smartkarma-citation="insights:54449" rel="noopener">CDL - Remedies for a Beleaguered Chinese Investment and Belligerent JV Partner</a>, we discussed CDL's investment in SP and potential remedies that may be considered.  In its subsequent H1 2021 earnings release, CDL disclosed that financial exposure to SP stood at SGD117 million. The latest set of moves mark a clinical and decisive exit from the SP debacle. This article discusses the key terms of transactions and the outlook ahead.</p>

On 10 September 2021, City Developments (CIT SP) announced plans to exit Sincere Property ("SP") through a series of transactions including, amongst others, divesting its remaining stake in Sincere Property, exiting director and officer appointments, and continuing to protect its creditor rights under the mainland entity's possible PRC bankruptcy proceedings. In CDL - Remedies for a Beleaguered Chinese Investment and Belligerent JV Partner, we discussed CDL's investment in SP and potential remedies that may be considered.  In its subsequent H1 2021 earnings release, CDL disclosed that financial exposure to SP stood at SGD117 million. The latest set of moves mark a clinical and decisive exit from the SP debacle. This article discusses the key terms of transactions and the outlook ahead.

City Developments - Clinical Exit from Sincere Property Investment