Hong Kong court pushes Kaisa’s liquidation case to August 12, giving developer a breather

Indebted Chinese developer Kaisa Group Holdings was granted another reprieve after a Hong Kong court on Monday adjourned a hearing, allowing the company more time to restructure its debts.

The next hearing will be on August 12, Justice Peter Ng Kar-fai announced, giving the Shenzhen-based developer more time to convince its debt holders and stave off liquidation. The Hong Kong court had adjourned the hearing several times, and the initial petitioner Broad Peak Investment dropped out from the case on March 8.

There is “no excuse” for another adjournment next time if no proposal is put forward between now and then, the judge said.

Citicorp International, as the trustee of an ad hoc group of bondholders, has replaced the Singapore-based hedge fund company to become the latest petitioner. It filed a petition after the developer failed to repay US$750 million in notes, according to Kaisa’s filings to the Hong Kong stock exchange.

Kaisa had 226.4 billion yuan of total liabilities and 232.8 billion yuan of total assets at the end of December 2023, according to its annual results.