(Yicai Global) July 14 -- Shares of Guangzhou R&F Properties fell despite the Chinese property developer saying it had not received any court documents related to two creditors allegedly seeking the firm’s bankruptcy restructuring.

After tumbling by as much as 8.9 percent earlier in the day, R&F [HKG: 2777] finished 5.7 percent lower at HKD1.16 (15 US cents) a share in Hong Kong.

R&F has more assets than liabilities, no solvency issues, and is operating normally, the Guangzhou-based company said in a statement yesterday, adding that there is no basis for bankruptcy.

China’s National Enterprise Bankruptcy Information Disclosure Platform revealed yesterday that R&F creditors Guangdong Xiangzheng Trading and Guangzhou Guangfeng Concrete are suing the builder to seek its bankruptcy restructuring.

R&F has not received any court documents related to the alleged bankruptcy application, the firm noted. R&D is negotiating with the two creditors about a dispute over CNY20 million (USD2.8 million) bills, but has not yet reached an agreement, it added.

R&F reported a CNY35.2 billion (USD4.9 billion) operating income last year, down 54 percent from the previous year. Its net loss narrowed 3.7 percent to CNY15.7 billion.

As of the end of 2022, R&F’s domestic and foreign bonds and bank and other borrowings exceeded CNY135 billion, according to a report from Lianhe Credit. Some CNY51.3 billion of the total is due in the next 12 months. R&F’s funds reached CNY12.3 billion.

Founded in 2016, Shaoguan, Guangdong province-based Xiangzheng Trading sells iron powder, slag, gypsum, building materials, and other products. Guangfeng Concrete was established in 2010. It mainly sells concrete, cement, and machinery and leases equipment.

Editor: Futura Costaglione