China’s Kaisa group granted reprieve to restructure $12b debt

Hong Kong courts have delayed a hearing on a petition to liquidate Kaisa Group until September 9th, giving the troubled Chinese developer more time to reach a deal with bondholders on its $12 billion debt restructuring plan.

Kaisa’s senior adviser, LL Tam, mentioned that the company is in the process of finalising documents for a restructuring agreement with bondholders, aiming to reach a settlement within a month.

Citicorp International, representing a significant group of Kaisa’s bondholders, assumed the petitioner role in March after the original petitioner withdrew. Notably, Citicorp did not oppose the adjournment request during Monday’s court hearing.

The specific case before the court centres on the non-payment of $750 million in principal for 2023 notes.

Attribution: Reuters