China property developer Kaisa faces Hong Kong lawsuit seeking to wind it up

CHINESE property developer Kaisa Group said on Monday (Jul 10) a winding-up petition has been filed against it in a Hong Kong court in relation to 170 million yuan (S$31.7 million) non-payments on onshore bonds.

Shares of the company dropped as much as 13.5 per cent by 0303GMT to HK$0.18, an all-time low.

Many Hong Kong-listed Chinese developers have faced winding-up petitions since the sector slipped into a debt crisis in mid-2021. Many property firms have defaulted and are undergoing debt restructuring.

Kaisa said the petition was filed by Broad Peak Investment Pte Advisers at the Hong Kong High Court on Jul 6, and the issuer of the yuan bonds is its wholly-owned subsidiary, Kaisa Group (Shenzhen).

The Shenzhen-based company said it would seek legal measures to oppose the petition vigorously, and it would continue to proactively communicate with its offshore creditors on the restructuring plan, with the objective of announcing terms to the market as soon as practicable.

The first hearing for the petition will be on Sep 13. REUTERS