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Hong Kong, China — Debt-hit Chinese developer Kaisa was given extra time to come up with a restructuring plan Monday as creditors sought to wind up the company, according to media reports.
The country’s developers have been hammered by Beijing’s decision in 2020 to crack down on excessive borrowing and rampant speculation in the property sector, with many facing restructuring following defaults.
Hong Kong courts this year have issued liquidation orders against two Chinese real estate firms, Evergrande and Dexin.
READ: For China’s property developers, Hong Kong is becoming Shenzhen’s backyard
The crisis has led mainland officials to announce several measures to support the sector, including easing mortgage rules, though commentators warn more needs to be done.
On Monday, Judge Peter Ng said he would adjourn the case against Kaisa — which first defaulted on $12 billion of offshore debt in 2021 — to August 12.
The winding up petition was filed last July.
“You really have no excuse if there is no progress,” Ng told company representatives, Bloomberg News reported.
“If there’s no progress between now and then, I’m not sure if the company judge is going to grant any further adjournment.”
Kaisa’s lawyer said Monday that the amount of debt being restructured amounted to nearly $13 billion.
The Shenzhen-based company is the second-largest issuer of offshore bonds among Chinese developers, behind Evergrande.
It reported total liabilities of 226 billion yuan ($31 billion) and 233 billion yuan in total assets as of the end of last year.
Chairman Kwok Ying-shing last week returned to Shenzhen to hold talks with local officials, according to Chinese media outlet Caixin.
Chinese developer Shimao is scheduled to appear in a Hong Kong court for a winding up petition on Wednesday.