China property developer Kaisa faces Hong Kong lawsuit seeking to wind it up

Kaisa group

10/07/2023 04:24

HONG KONG, July 10 (Reuters) - Chinese property
developer Kaisa Group  1638.HK  said on Monday a winding-up
petition has been filed against it in a Hong Kong court in
relation to 170 million yuan ($23.50 million) non-payments on
onshore bonds. 
    Shares of the company dropped as much as 13.5% by 0303GMT to
HK$0.18, an all-time low.
    Many Hong Kong-listed Chinese developers have faced
winding-up petitions since the sector slipped into a debt crisis
in  mid-2021. Many property firms have defaulted and are
undergoing debt restructuring.
    Kaisa said the petition was filed by Broad Peak Investment
Pte Advisers Ltd at the Hong Kong High Court on July 6, and the
issuer of the yuan bonds is its wholly-owned subsidiary, Kaisa
Group (Shenzhen) Co Ltd. 
    The Shenzhen-based company said it would seek legal measures
to oppose the petition vigorously, and it would continue to
proactively communicate with its offshore creditors on the
restructuring plan, with the objective of announcing terms to
the market as soon as practicable. 
    The first hearing for the petition will be on Sept. 13.
($1 = 7.2330 Chinese yuan renminbi)

 (Reporting by Clare Jim; Editing by Robert Birsel)
 ((clare.jim@thomsonreuters.com;))