Kaisa announces restructuring support, Shenzen property sale issues

By Caroline Salls

Pittsburgh, Jan. 26 – Kaisa Group Holdings Ltd. said holders of about 53% of the total outstanding principal amount of its existing notes and offshore loans had agreed to support the company’s restructuring as of Tuesday.

According to a company news release, each consenting creditor who agrees to support the restructuring by Feb. 7 and holds supporting notes on the restructuring support agreement deadline will receive a cash consent fee equal to 0.5% of the total principal amount of the creditor’s supporting notes.

The company said it is working with its advisers and advisers to a steering committee to finalize the restructuring documents.

In a separate news release, Kaisa said it has four property projects under pre-sale in Shenzhen, but as of Monday, a total of 981 units were subject to seizure by People’s Republic of China local courts upon the application of creditors. As a result, these units are not available for sale.

The company said 320 units remain subject to the blockage, which is designed to protect the interest of the buyers of these units who have only entered into provisional sale and purchase agreements with the company.

Kaisa said it is in discussion with the creditors, with the goal of resuming sales of these four property projects in Shenzhen as soon as possible.

In addition, Kaisa said FTI Consulting (Hong Kong) Ltd. was hired by the independent committee of its board to conduct forensic investigation into the issues raised by an auditor in a report announced in September.

As of Monday, the company’s onshore debt in the amount of RMB 33.32 billion, including RMB 16.35 billion granted by China Citic Bank Corp. Ltd. and Citic Trust Co., Ltd. had been restructured upon completion of relevant registration procedures, the release said.

Kaisa said the institutions will continue to provide financing in support of its business development.

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.