The latest development came after the Shenzhen developer said on Friday it had signed an agreement with a key bondholder group on the terms of restructuring its $6.6 billion in offshore debt.

The Hong Kong High Court on Monday adjourned the liquidation proceedings for four weeks to give the group of banks time to decide whether they would replace the original petitioners.

The original petitioners, holding Logan's 5.75% 2025 bond, filed a winding-up petition against the developer and its two units in Nov. 2022 through Citicorp International, the bond trustee.

Logan, which stopped making offshore repayments in August 2022, said the restructuring plan includes four options for creditors to swap part of their debt to cash, new notes and/or convertible bonds.

The company said in its filing on Friday that it aimed to cut its offshore debt by between $2.6 billion and $3 billion as its estimated cumulative cash for offshore repayments is between $4 billion and $4.7 billion during the restructuring period.

Shares of Logan firmed 8.3% by Monday noon, after they were suspended from trading on Friday.

A number of Chinese developers, including China Evergrande Group and Country Garden, have defaulted their offshore debt and entered into restructuring process since the sector was embroiled in a debt crisis since mid-2021.

During the hearing on Monday, Judge Anthony Chan said he found it "odd" that the group of banks did not get involved in the Logan discussions earlier and he did not want the case to drag on much longer.

A lawyer representing the banks told the court that Logan had provided little information on the restructuring terms prior to the announcement last Friday.

(Reporting by Clare Jim; Editing by Anne Marie Roantree, Kim Coghill and Sonali Paul)