Kaisa’s debt restructuring plan gains support from over 80 per cent of overseas creditors
Investors led by Farallon Capital Asia and BFAM Partners (Hong Kong) agree to restructuring plan after ‘certain modifications’ to terms
Troubled Chinese developer Kaisa Group, which has been struggling to restructure its debt after defaulting on US dollar bonds, said it has won support from investors representing more than 80 per cent of its offshore debt claims.
The long-discussed restructuring plan looks set to proceed after the developer provided a better settlement for creditors.
In a statement to the Hong Kong stock exchange on Thursday night, the Shenzhen-based developer said a group of investors led by Farallon Capital Asia and BFAM Partners (Hong Kong) has agreed to support its restructuring plan after “certain modifications to the economic terms”. Total support has risen from the more than 58 per cent it had on February 17 to in excess of 80 per cent.
In a separate statement, BFAM and Farallon said they were pleased to have come to a consensual resolution with Kaisa. “We appreciate our bondholder group’s support in achieving a better outcome,” the statement said.
We appreciate our bondholder group’s support in achieving a better outcome
Compared to the initial plan, Kaisa has increased by 0.56 per cent per annum the PIK (payment in kind) coupon and added 0.61 per cent per annum for the cash component of the PIK toggle coupon.
