(FILES) The Hong Kong flag is seen near the High Court in Hong Kong on July 28, 2023. The Hong Kong government said on June 12, 2024 it had cancelled the passports of six democracy activists who fled to the United Kingdom, calling them “lawless wanted criminals”. (Photo by Isaac LAWRENCE / AFP)
A Hong Kong court on Monday gave troubled Chinese developer Kaisa four more weeks to work with bondholders to come up with a viable restructuring plan.
China’s property sector has yet to bounce back from Beijing’s 2020 crackdown on excessive borrowing and rampant speculation, with some developers now undergoing restructuring after defaults.
Shenzhen-based Kaisa is the second-largest issuer of offshore bonds among Chinese developers, behind Evergrande, and first defaulted on its debt in 2021.
READ: Hong Kong judge gives property firm Kaisa time to restructure debt
Judge Anthony Chan agreed Monday to adjourn the case to September 9, an arrangement agreed on by both the company and the petitioners.
“The parties are in agreement that the case should be adjourned for four weeks with the expectation that we will finally be able to sign the agreement this time,” said lawyer Eva Sit, representing the bondholders.
Kaisa reported total liabilities of 226 billion yuan ($32 billion) as of the end of last year.
At a June hearing, the developer’s representative said the amount of debt being restructured was around $13 billion.
The judge at the time warned that Kaisa had “no excuse” for failing to make progress and the court may not grant further adjournments.
The winding-up petition against Kaisa was filed last July.