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China property crisis: troubled Kaisa tells court creditors will get less than 5% of their money back if it is liquidated
- In a document Kaisa filed with a court in Hong Kong, the company said its cash-to-short term debt ratio is just 0.02 and it is ‘cashflow insolvent’
- Kaisa is one of a number of mainland developers including China Evergrande facing winding-up petitions after they defaulted on their debt obligations
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Embattled Chinese property developer Kaisa Group Holdings has said it is “cashflow insolvent” and that its creditors will get less than 5 per cent of their money back if it is forced into liquidation, a court heard.
In a document Kaisa filed with a court in Hong Kong, the company said its cash-to-short term debt ratio is just 0.02, Reuters reported on Tuesday.
Kaisa is one of a number of mainland developers including China Evergrande Group facing winding-up petitions after they defaulted on their debt obligations. The company has made some progress in restructuring its US$18 billion of borrowings after defaulting on its offshore bonds in 2021.
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At a hearing on Tuesday, barrister James Wood, representing the petitioner Broad Peak Investment Advisers, cited a statement Kaisa had filed with the court saying the recovery rate would be less than 5 per cent in a liquidation scenario, according to a report by Reuters.
The details of the document were confirmed to the Post by a person familiar with the matter, who asked not to be named.
04:49
Anger mounts as China's property debt crisis leaves flats unfinished
Anger mounts as China's property debt crisis leaves flats unfinished
“Creditors are waiting for a restructuring update, but they do not have a concrete plan,” the source said.
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