Kaisa Group creditors back near $13 billion offshore debt revamp (updated)

Kaisa group

28/02/2025 11:17

Updates with details and background

Feb 28 (Reuters) - Chinese property developer Kaisa Group 1638.HK said on Friday it has secured overwhelming support from the majority of its creditors for its nearly $13 billion debt restructuring, clearing a crucial hurdle in resolving its financial woes.

Kaisa reached a restructuring agreement with a key creditor group in August 2024 and later announced in September 2024 that more than 75% of creditors across two categories had backed the plan.

Under its restructuring plan, Kaisa will issue new dollar notes and mandatory convertible bonds to clear the existing debt of the Shenzhen-based company and its subsidiary, Rui Jing Investment.

Once a hallmark of China's credit market boom, Kaisa found itself under pressure after defaulting on a bond in 2021, prompting creditors to sue for liquidation in 2023.

With $13 billion in offshore debt undergoing restructuring, the developer bears one of the heaviest debt burdens in the industry.

A sanction hearing for the debt restructuring proposal is scheduled at the Hong Kong high court for March 21.

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Vijay Kishore)

 ((Rishav.Chatterjee@thomsonreuters.com;))