* Liquidation petition filed for non-payment of $205 mln loan

* Hong Kong-listed Kingboard files petition in local court

* Hong Kong court hearing set for May 17

* Country Garden says would continue to work on debt revamp plan

Feb 28 (Reuters) - Chinese developer Country Garden said on Wednesday a liquidation petition has been filed against it for non-payment of a $205 million loan, clouding its debt revamp prospects and undermining Beijing's effort to restore confidence in the property sector.

Country Garden said in a regulatory filing to the Hong Kong Stock Exchange it would "resolutely" oppose the petition, which was filed by a creditor, Ever Credit Limited, a unit of Hong Kong-listed Kingboard Holdings.

A court hearing had been set for May 17. Kingboard did not immediately respond to Reuters request for comment.

Country Garden's shares fell more than 12% on Wednesday after the filing, lagging a 0.2% gain for the benchmark Hang Seng Index.

The petition is set to revive homebuyer and creditor concerns about the Chinese property sector's debt crisis at a time when Beijing is trying to boost confidence in the industry that accounts for a quarter of China's GDP.

A liquidation of Country Garden would exacerbate the real estate crisis, put more strain on its onshore lenders, and could delay the prospect of a recovery of not only the property market, but the overall Chinese economy.

The petition comes a month after China Evergrande Group , the world's most indebted property developer with more than $300 billion in liabilities, was ordered to be liquidated by a Hong Kong court.

Evergrande now faces a complicated restructuring process that some investors think could last more than a decade.

China's property sector, a pillar of the world's second-largest economy, has lurched from one crisis to another since 2021 after a regulatory crackdown on debt-fueled construction triggered a liquidity squeeze.

A string of developers have defaulted on their repayment obligations since then, and many of them have either launched or are in the process of starting debt restructuring processes to avoid facing bankruptcy or liquidation proceedings.

China's new home prices slowed their month-on-month declines in January with the biggest cities seeing some stabilization, but the nationwide downward trend persisted despite Beijing's efforts to revive demand.

"RADICAL ACTIONS"

Country Garden's debt restructuring process, which gathered momentum in recent weeks with its $11 billion offshore debt deemed to be in default, could be clouded by the liquidation petition if it makes other creditors think twice about settling.

Country Garden has appointed KPMG and law firm Sidley Austin as advisers to examine its capital structure and liquidity position and formulate what it called a "holistic" solution.

The company in last October missed a $15 million bond coupon repayment, and so-called ad hoc bondholder groups were formed consisting of international creditors. It is not immediately known if Country Garden has started talks with the creditors.

The developer had total liabilities of 1.36 trillion yuan ($188.9 billion) as at the end of June, 2023, close to its 1.43 trillion yuan of total assets.

"Country Garden has taken way too long, messing around with switching advisors and wasting time, so it's no surprise people lose their patience and would rather liquidate them," a Country Garden dollar bond investor told Reuters.

The investor could not be named as they were not permitted to speak to media.

Country Garden said in its filing that it would continue to "proactively communicate and work with its offshore creditors on its restructuring plan" as it aimed to announce terms to the market as soon as practicable.

"The radical actions of a single creditor will not have a significant impact on our company's guaranteed delivery of buildings, normal operations and the overall restructuring of overseas debts," it said in statement to Reuters.

Investment holding firm Kingboard in October became one of the first known companies to take legal action against Country Garden when its unit Ever Credit, which is owed HK$1.6 billion ($204.5 million), issued a statutory demand seeking repayment.

Earlier this year, Country Garden's top management warned that the property market would remain weak in 2024 and the company could face more, "severe" challenges.

Country Garden has also stepped up disposing of its assets offshore recently to raise fund, selling its stake in its last Australian project last month and putting a residential development in East London up for sale.

($1 = 7.8244 Hong Kong dollars)

($1 = 7.1989 Chinese yuan renminbi) (Reporting by Scott Murdoch in Sydney and Clare Jim in Hong Kong. Additional reporting Poonam Behura; Editing by Sumeet Chatterjee and Stephen Coates)