China's Kaisa to hold shareholder meeting in December to discuss restructuring

(Reuters) -China-based property developer Kaisa said on Friday it would hold an extraordinary general meeting of its shareholders on Dec. 18 to seek various approvals in relation to its $12.27 billion debt restructuring agreement.

The developer has been working to restructure its debt since defaulting on $12 billion in offshore bonds in late 2021.

At the meeting, Kaisa would discuss with its creditors matters relating to its offering worth $5 billion of U.S. dollar-denominated senior notes and $4.8 billion worth of mandatory convertible bonds.

It would also go over the work fee share issue with Citicorp International, a bond trustee of an ad hoc group of bondholders (AHG). The work fee share issue is around $26.9 million.

Kaisa is due for a Hong Kong court hearing on Dec. 19, where it will seek permission to hold a creditors' vote on its debt overhaul plan.

Kaisa is the second-largest offshore debt issuer among Chinese developers after China Evergrande Group. It became the first among its peers to default on dollar bonds in 2015.

Many Chinese property developers have defaulted since the sector slipped into a debt crisis in mid-2021, and only a handful of companies have completed their offshore debt restructuring.

(Reporting by Roshan Thomas in Bengaluru; Editing by Shinjini Ganguli)