A Hong Kong court has granted troubled Chinese developer Kaisa Group an additional four weeks to negotiate with bondholders and finalise a debt restructuring plan.
Kaisa, headquartered in Shenzhen, is the second-largest issuer of offshore bonds among Chinese developers, trailing Evergrande.
The company first defaulted on its debt in 2021, amid the broader downturn in China's property sector following Beijing's 2020 crackdown on excessive borrowing and speculation.
Judge Anthony Chan agreed to extend the case until September 9, following a mutual agreement between Kaisa and the petitioners. The extension allows more time for the parties to reach a viable restructuring agreement.
Lawyer Eva Sit, representing the bondholders, stated, "The parties agree that the adjournment will help us finalise the agreement this time."
As of the end of last year, Kaisa reported total liabilities of 226 billion yuan. At a June hearing, the company indicated that around $13 billion of this debt was under restructuring.
The judge had previously warned Kaisa that failure to show progress could result in no further extensions. The winding-up petition against Kaisa was initially filed in July of the previous year.
(ET)
