A Singapore-based hedge fund has filed a winding-up petition in Hong Kong against Kaisa Group Holdings Ltd., potentially complicating the Chinese builder’s debt-restructuring effort.
(Bloomberg) — A Singapore-based hedge fund has filed a winding-up petition in Hong Kong against Kaisa Group Holdings Ltd., potentially complicating the Chinese builder’s debt-restructuring effort.
Broad Peak Investment Advisers took the court action regarding alleged nonpayment of 170 million yuan ($24 million) of onshore bonds, Kaisa said in an exchange filing Monday. Most winding-up petitions filed against mainland developers in Hong Kong have involved dollar-denominated debt.
The builder said it will “seek legal measures to resolutely oppose the petition” and that it plans to continue working with offshore creditors on a restructuring plan. Kaisa added it aims to announce terms “as soon as practicable.” Several firms have received Hong Kong court orders to liquidate amid a lack of progress on debt restructurings.
Shares fell 16% Monday in Hong Kong, hitting a fresh record low. Kaisa’s market value has plunged to $157 million from $3.5 billion in 2021, according to data compiled by Bloomberg.
Kaisa started missing dollar-bond payments in December 2021, before a record surge of delinquencies among Chinese builders as a liquidity crunch and sales slump walloped the sector. The firm has $8.1 billion of outstanding and defaulted dollar bonds, according to data compiled by Bloomberg.
A hearing for the winding-up petition has been scheduled for Sept. 13. The creditor’s solicitor is Fairbairn & Co., according to a court document.
(Updates stocks data in the fourth paragraph and adds solicitor detail in the final paragraph.)
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