[SINGAPORE] Kaisa Group Holdings Ltd's debt restructuring will probably succeed after gaining local support as both onshore and offshore creditors met over the weekend to align their interests, advisers said.
The Shenzhen-based developer is believed to be getting backing from a committee of onshore creditors, the local government and the China Banking Regulatory Commission, according to an e-mailed statement from Kirkland & Ellis and Moelis & Co, who are advising some offshore bondholders. There's "high likelihood" that the onshore restructuring can succeed, they said.
The developer, which defaulted on dollar-denominated bonds in April, unveiled its debt workout plan on Nov 6.
It rebuffed a competing proposal on Nov 19 from US hedge fund Farallon Capital Management LLC, saying the plan undervalued the company and has remote chances of passing regulatory hurdles.