Hong Kong court has given troubled Chinese property developer Kaisa four more weeks to work with bondholders and come up with a viable restructuring plan.
China's real estate sector has yet to recover from Beijing's 2020 crackdown on excessive lending and unbridled speculation, with some developers already in the process of restructuring after defaulting.
Shenzhen-based Kaisa is the second-largest issuer of offshore bonds among Chinese developers, after Evergrande, and defaulted on its debt for the first time in 2021.
Today, Judge Anthony Chan agreed to adjourn the case to September 9, a deal agreed to by both the company and the petitioners.
"The parties agree that the case should be postponed for four weeks with the expectation that this time we will finally be able to sign the agreement," said lawyer Eva Sitt, representing the bondholders.
As of the end of last year, Kaisa reported total liabilities of 226 billion yuan ($32 billion).
During the hearing in June, the developer's representative stated that the amount of debt being restructured was about $13 billion.
The judge then warned that Kaisa had "no excuse" for not making progress and that the court may not grant any further adjournments.
Kaisa's liquidation petition was filed in July last year. | BGNES
