Updates with details and background
Feb 28 (Reuters) - Chinese property developer Kaisa Group 1638.HK said on Friday it has secured overwhelming support from the majority of its creditors for its nearly $13 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% 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 $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.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Vijay Kishore)
((Rishav.Chatterjee@thomsonreuters.com;))
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