Kaisa Seeks U.S. Bankruptcy Court Aid in Hong Kong Restructuring

Kaisa Group Holdings Ltd., which last year became the first Chinese real estate developer to default on dollar bonds, is seeking to use U.S. bankruptcy law to help its debt reorganization in a Hong Kong court, Bloomberg News reported. The Shenzhen, China-based company filed a Chapter 15 petition in Manhattan court Thursday. Companies use that provision of U.S. bankruptcy law to deal with U.S. creditors or lawsuits when reorganizing in another country. Kasia, which listed $14.9 billion in debt and $16.1 billion in assets, said that holders of 96 percent of its offshore obligations, which are from outside of China, support the restructuring agreement negotiated in the Hong Kong proceeding. Given this backing, the company anticipates that the Hong Kong court will approve the plan. A meeting with creditors is set for May 20. Read more. (Subscription required.)