(Bloomberg) -- Kaisa Group Holdings Ltd. plans to come up with a restructuring agreement within a month, as the troubled Chinese builder is set to defend against a liquidation petition again in four weeks.
Kaisa’s winding-up petition in Hong Kong was further adjourned to Sept. 9, according to a court decision on Monday. The company aims to finalize the restructuring agreement in less than four weeks, LL Tam, a senior adviser to Kaisa, said outside the courtroom.
A Kaisa legal representative said the builder would submit an update of its restructuring progress to the court a week before the next hearing. Kaisa, with $32.7 billion in total liabilities, is facing increasing pressure from the court to show progress in its debt talks to avoid being liquidated.
Once a symbol of the boom years in China’s credit markets, Shenzhen-based Kaisa has been fighting against creditors’ efforts for about a year without publicly presenting a restructuring plan. Its legal battle was triggered by a winding-up petition first filed by a Singapore-based hedge fund. The case was then taken over by a group of creditors that held or controlled more than 35% of Kaisa’s offshore borrowings.
Times China Holdings Ltd., another Chinese residential builder, also received a reprieve in Hong Kong’s high court, with its liquidation hearing adjourned to Oct. 21. A company representative said Monday that a restructuring term sheet would be released this month, while the petitioner asked for “something real and concrete.”
A viable restructuring plan should be presented, otherwise “serious consequences may follow,” the Hong Kong judge warned at Times China’s hearing.
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