👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Chinese property developer Kaisa's liquidation hearing adjourned to May 27

Published 04/28/2024, 11:48 PM
Updated 04/29/2024, 12:06 PM
© Reuters. FILE PHOTO: A woman walks past a construction site of Kaisa Group Holdings, in Shanghai, China, December 7, 2021. REUTERS/Aly Song/File Photo
HK50
-
3333
-
1638
-
CSI300
-

HONG KONG (Reuters) - A Hong Kong court adjourned a hearing to liquidate Kaisa Group to May 27, as the embattled Chinese property developer said it aims to iron out restructuring terms in the coming four weeks.

Shenzhen-based Kaisa has been working on an offshore debt restructuring for two years after defaulting on its $12 billion of offshore debt in late 2021.

Kaisa's lawyer told the court on Monday that progress had been made on the restructuring negotiations with the ad hoc group of bondholders, and that it will try to sign an agreement in the next four weeks.

Citicorp International, the bond trustee of the 2023 notes with an outstanding principal of $750 million, was instructed by the ad hoc group to become the new petitioner in the last hearing in March, after the original petitioner, Broad Peak Investment, withdrew its petition, filed in July.

Many Chinese developers, including giant Country Garden, are facing winding-up petitions filed after the sector plunged into a debt crisis in 2021, resulting in numerous companies defaulting. The Hong Kong High Court in January ordered Evergrande to liquidate.

But a growing list of developers reached restructuring agreement with their creditors. The latest was Shanghai-based CIFI Holdings, which on Monday detailed its plan to cut its offshore debt by up to $4 billion.

Shares of Kaisa jumped 23% on Monday, in line with the performance of other property peers. Hong Kong's Hang Seng Mainland Properties Index firmed 5.6%, while mainland China's CSI 300 Real Estate Index rallied 7.3%

© Reuters. FILE PHOTO: A woman walks past a construction site of Kaisa Group Holdings, in Shanghai, China, December 7, 2021. REUTERS/Aly Song/File Photo

Kaisa is China's second-largest issuer of offshore debt among developers after China Evergrande (HK:3333) Group and was the first Chinese property developer to default on its dollar bonds in 2015.

Last month Kaisa reported a widening net losses of 19.9 billion yuan billion yuan for 2023. Its total liabilities and total assets were 226.4 billion yuan and 232.8 billion yuan, respectively, at the end of last year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.