Kaisa, Times China get reprieves in Hong Kong winding-up cases, promise debt workout plans
- The developers, which defaulted on US$15 billion of offshore debts, get four- and 10-week adjournments in lawsuits from hostile creditors
Troubled Chinese developers Kaisa Group and Times China Holdings, which defaulted on a combined US$15 billion of offshore debts, have been granted more time to negotiate with creditors as the city’s High Court on Monday ordered adjournments in their winding-up hearings.
Shenzhen-based Kaisa Group got a four-week reprieve after Justice Anthony Chan adjourned the case to September 9. The company will announce a debt workout plan before the next hearing, Lai Ling Tam, senior advisor for the Kaisa Group, said outside the court after the hearing.
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Bondholders, through their trustee Citicorp International, filed a winding-up petition against Kaisa after it failed to repay a US$750 million bond, according to stock exchange filings. The firm had 226.4 billion yuan (US$31.6 billion) in total liabilities on December 31, according to its annual report.
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Times China Holdings, based in Guangzhou, got a 10-week reprieve as the Judge pushed the case to October 21 after lawyers for both sides asked for an adjournment.