Xie Yu
HONG KONG (Reuters) – A Hong Kong court on Monday adjourned a hearing on Kaisa Group’s liquidation petition until June 24, giving the embattled Chinese property developer some respite as it works on a debt restructuring plan.
On the news, Kaisa shares rose nearly 6% in early trading in Hong Kong.
The Shenzhen developer is working to restructure offshore debt within two years after defaulting on $12 billion of offshore debt at the end of 2021.
The case before the court involves unpaid bonds due 2023 with $750 million in principal outstanding, and Citicorp International, the trustee of a major group of bondholders, has been the plaintiff since March after the former plaintiff withdrew.
The reason for the postponement was not disclosed. A Kaisa spokesman said they were discussing the specific terms of the restructuring plan with a group of bondholders.
Kaisa is the second largest issuer of offshore debt in China among property developers after China. Evergrande (HK:) Group and became the first Chinese property developer to default on its dollar bonds in 2015.
Earlier this year, a Hong Kong court ordered China Evergrande to liquidate the company, and a growing number of companies in the sector, including Country Garden, are fighting winding-up petitions filed by creditors.