Kaisa launches restructuring support agreement, details consent fees

By Caroline Salls

Pittsburgh, Jan. 11 – Kaisa Group Holdings Ltd. launched a restructuring support agreement (RSA) on Sunday in connection with its previously announced proposed restructuring, according to a news release.

Under the RSA, Kaisa agreed to progress the proposed restructuring as soon as possible, and consenting creditors agreed to vote to support the scheme necessary for implementing the restructuring and refrain from taking enforcement action.

Each consenting creditor that consents to the RSA and holds supporting notes on the RSA deadline will receive a cash consent fee equal to 1% of the total principal amount of its existing notes and/or existing offshore loans if the creditor consents by Jan. 24 and a fee equal to 0.5% of the existing notes or offshore loans if the creditor consents after the Jan. 24 deadline but by Feb. 7.

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

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.

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

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