Chinese Builder Kaisa Reaches Deal With Creditors on Debt Plan
- Company plans to issue at least $9.8 billion of new bonds
- Company’s next wind-up hearing is set for next month
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Kaisa Group Holdings Ltd. struck a restructuring deal with a key creditor group with plans for new bonds that may exceed $10 billion, a step that may help the Chinese developer defend itself against a liquidation petition.
Under the terms released Tuesday, Kaisa plans to issue new dollar notes — totaling $5 billion in five tranches and an unspecified amount in another — to partially pay back creditors. The Shenzhen-based company’s restructuring will also include new mandatory convertible bonds — with a total principal amount of $4.8 billion in seven tranches and an unspecified amount in another — that can be swapped for new shares, according to its filing.