Kaisa Group negotiates restructuring support agreement with creditors

By Caroline Salls

Pittsburgh, Dec. 24 – Kaisa Group Holdings Ltd. intends to enter into a restructuring support agreement with holders of convertible bonds, existing high-yield notes and existing offshore loans to support the implementation of its proposed restructuring, according to a news release.

The company said it negotiated the terms of a detailed support agreement with a steering committee and their respective advisers.

On the effective date of Kaisa’s schemes of arrangement, each creditor who has consented to the support agreement before a predetermined date will be eligible to receive a cash consent fee.

The company said additional details on the agreement will be released in early January.

Kaisa said it intends to implement the proposed restructuring through inter-conditional schemes of arrangement in the Cayman Islands and Hong Kong.

The company said holders of the convertible bonds, existing high-yield notes and existing offshore loan facilities are expected to constitute a single class for voting on the schemes.

Each scheme participant will be entitled to elect one option for the treatment of their claims. Those options include an exchange of 100% of claims for an allocation of each series of new high-yield notes and contingent value rights, an exchange of 100% of claims for restructured convertible bonds and an exchange of 100% of claims for a share of each series of new high-yield notes, the CVRs and the restructured convertible bonds.

If there are not enough restructured convertible bonds available for issue to all creditors electing to receive them, those holders would be provided with a share of each series of the new high-yield notes and CVRs to cover the shortfall, the release said.

The company is expected to apply to the courts in mid-January for permission to hold creditor meetings.

According to a separate release, Kaisa’s board of directors appointed Wan Bing as chief financial officer, effective Dec. 23.

Wan has been the executive vice president of the group since June 2015.

Kaisa Group is a Shenzhen, China-based property development company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.