Kaisa Group creditors back near US$13 billion offshore debt revamp

Chinese property developer Kaisa Group (1638) said on Friday it has secured overwhelming support from the majority of its creditors for its nearly US$13 billion (HK$101.4 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 percent 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 US$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.

REUTERS