Kaisa Hong Kong scheme approval recognized; effective date July 21

By Caroline Salls

Pittsburgh, July 14 – Kaisa Group Holdings Ltd.’s Hong Kong scheme of arrangement and the order entered by the High Court of Hong Kong sanctioning the scheme were granted recognition Thursday by the U.S. Bankruptcy Court for the Southern District of New York.

The conditions required for Kaisa’s restructuring and exchange to take effect are expected to be satisfied on July 21.

Based on the elections made by scheme creditors for treatment of their offshore claims, the total consideration expected to be issued under the Hong Kong and Cayman Islands schemes on the exchange date in mandatorily exchangeable bonds, series A notes, series B notes, series C notes, series D notes and series E notes is $3,034,097,520.

In addition, $16.28 million in contingent value rights are expected to be issued on the exchange date.

Kaisa said scheme creditors who elected mandatorily exchangeable bonds will receive 71.84% of their elections in the form of mandatorily exchangeable bonds and the residual claims will be satisfied and allocated in accordance with the election made by each creditor in connection with a cut-back treatment.

In accordance with the company’s amended restructuring support agreement and support undertaking, consent fees will be payable seven business days after the restructuring effective date.

Kaisa Group, a Shenzhen, China-based property development company, filed bankruptcy on May 5 to gain U.S. court recognition of its Hong Kong scheme proceedings. The Chapter 15 case number is 16-11303.

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