Hong Kong Court Adjourns Kaisa Group Liquidation Hearing

A Hong Kong court has adjourned a hearing regarding the petition for the liquidation of Kaisa Group, a troubled Chinese developer, until September 9. The delay provides Kaisa more time to finalize an agreement with bondholders as part of its ongoing debt restructuring efforts.

Background on Kaisa Group Financial Struggles:

Based in Shenzhen, Kaisa Group has been engaged in a complex restructuring process for its $12 billion offshore debt since it defaulted in late 2021.

The company’s senior adviser, LL Tam, indicated that Kaisa is finalizing documents for a restructuring agreement with bondholders and hopes to settle within a month.

Legal Proceedings and Petition Details:

Citicorp International, the trustee for a significant group of bondholders, spearheaded the petition for liquidation after a previous petitioner withdrew earlier this year.

The current legal matter before the Hong Kong court involves the non-payment of 2023 notes, with an outstanding principal of $750 million.

Petitioner’s Stance:

During the court session on Monday, the petitioner did not oppose the request for adjournment, allowing Kaisa additional time to negotiate with bondholders and potentially avoid liquidation.

The next court hearing is set for September 9. By then, Kaisa hopes to have secured a debt restructuring agreement, averting further legal complications and moving closer to resolving its financial crisis.