Kwok Ying-shing's Kaisa Group Proposes Debt Restructuring to Avoid Liquidation
Kaisa Group's Restructuring Initiatives
Kaisa Group, led by Kwok Ying-shing, has introduced a comprehensive debt restructuring plan in response to ongoing pressures from bond holders. The proposal, which aims to avert a liquidation hearing in Hong Kong, offers multiple payment options, including mandatory convertible bonds (MCB) and new notes in US dollars.
Key Components of the Plan
- Six tranches of senior notes totaling over US$5 billion.
- Eight tranches of mandatory convertible bonds with an aggregate principal of US$4.8 billion allocated to creditors.
- Contribution of 115 million yuan (US$16.1 million) by Kwok Ying-shing and Kwok Ying-chi as a shareholder loan.
The restructuring plan has gained the backing of bond holders representing over 34% of Kaisa's debt, an essential step towards achieving a sustainable capital structure. However, with liabilities exceeding 226.4 billion yuan, the company has faced significant challenges since defaulting on US$12 billion of offshore bonds in 2021.
Outlook and Impact
The proposed restructuring is a critical move for Kaisa Group as it faces an impending liquidation court hearing set for September 8. Creditors have expressed frustration over their stalled investments, prompting urgent action. If successful, this plan could stabilize Kaisa's operations and protect the interests of all stakeholders involved.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.