Chinese property developer Kaisa's liquidation hearing adjourned (updated)

Kaisa group

27/05/2024 03:34

(Recasts and writes through)
    By Xie Yu
       HONG KONG, May 27 (Reuters) - A Hong Kong court on
Monday adjourned a hearing on a petition seeking the liquidation
of Kaisa Group  1638.HK  until June 24, giving the embattled
Chinese developer some respite as it works on its debt
restructuring plan.
    Kaisa shares surged nearly 6% in early Hong Kong trade on
the news. 
    The Shenzhen-based developer has been working on an offshore
debt restructuring for two years after defaulting on $12 billion
in offshore debt in late 2021.
    The matter before the court concerns the non-payment of 2023
notes with an outstanding principal of $750 million and 
Citicorp International, the trustee of a major group of
bondholders, has been acting as petitioner since March after a
former petitioner withdrew.
    The reason for the adjournment was not disclosed. A
spokesperson for Kaisa said they were discussing specific terms
of the restructuring plan with the bondholder group.
    Kaisa is China's second-largest issuer of offshore debt
among property developers after China Evergrande Group  3333.HK 
and was the first Chinese property developer to default on its
dollar bonds in 2015.
    China Evergrande was ordered to liquidate by a Hong Kong
court earlier this year and a growing list of companies in the
sector, including Country Garden  2007.HK , are fighting against
liquidation petitions filed by creditors.
   

 (Reporting by Xie Yu; Editing by Anne Marie Roantree and Edwina
Gibbs)
 ((Yu.Xie@thomsonreuters.com;))