- A Hong Kong court delayed a hearing on a petition to liquidate Kaisa Group.
- The postponement gives Kaisa until August 12th to finalize a debt restructuring plan with creditors.
- This decision comes amidst a wave of financial difficulties faced by Chinese property developers.
Hong Kong, June 25, 2024: The embattled Chinese property developer Kaisa Group was granted a temporary reprieve today as a Hong Kong court adjourned a hearing on a petition seeking its liquidation.
Facing the Music:
Kaisa defaulted on a massive $12 billion in offshore debt in late 2021, sparking concerns about its financial viability. Creditors filed a petition with the Hong Kong court requesting the company’s liquidation to recover their losses.
More Time to Negotiate:
The court agreed to postpone the hearing until August 12th, 2024. This delay provides Kaisa with valuable time to finalize a debt restructuring plan with its creditors, potentially avoiding liquidation.
A Similar Situation:
This isn’t the first time a Chinese property developer has faced such turmoil. Earlier this year, China Evergrande Group, another major developer with significant offshore debt, was ordered to liquidate by a Hong Kong court.
