China’s Kaisa to hold shareholder meeting in December to discuss restructuring

(Reuters) -China-based property developer Kaisa said on Friday it would hold an extraordinary general meeting of its shareholders on Dec. 18 to seek various approvals in relation to its $12.27 billion debt restructuring agreement.

The developer has been working to restructure its debt since defaulting on $12 billion in offshore bonds in late 2021.

At the meeting, Kaisa would discuss with its creditors matters relating to its offering worth $5 billion of U.S. dollar-denominated senior notes and $4.8 billion worth of mandatory convertible bonds.

It would also go over the work fee share issue with Citicorp International, a bond trustee of an ad hoc group of bondholders (AHG). The work fee share issue is around $26.9 million.

Kaisa is due for a Hong Kong court hearing on Dec. 19, where it will seek permission to hold a creditors’ vote on its debt overhaul plan.

Kaisa is the second-largest offshore debt issuer among Chinese developers after China Evergrande (HK:) Group. It became the first among its peers to default on dollar bonds in 2015.

Many Chinese property developers have defaulted since the sector slipped into a debt crisis in mid-2021, and only a handful of companies have completed their offshore debt restructuring.