Business
Kaisa’s Hong Kong Shares Skyrocket as Over 75% of Creditors Back Debt Restructuring Plan: A Turnaround Amid China’s Leverage Crackdown
Kaisa's stock skyrockets in Hong Kong due to the backing of a debt restructuring proposal by the majority of its creditors. The filing reveals that investors, who possess over 75% of its unpaid loans, have consented to endorse its restructuring conditions.
The share price increased to a peak of 3.6 Hong Kong cents, reaching 12.2 Hong Kong cents, before finally settling at 10.1 Hong Kong cents on Tuesday, as per data from the stock exchange. There's been a 42% decrease in its value this year. Meanwhile, the wider market progressed, with the Hang Seng Index rising by 1.4%.
The developer has failed to pay approximately US$12 billion in bonds and other loans since 2021, due to China's "three red lines" policy aimed at restraining excessive borrowing in the sector. Kaisa also defaulted in 2015, marking the first time a Chinese developer reneged on offshore dollar bonds.
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