Kaisa Group Holdings Ltd., the first and only Chinese property developer to default on overseas debt, will hold a board meeting on Saturday to approve the publication of its 2014-1016 annual results, Bloomberg reports.
Releasing the long-overdue results is the final condition the Shenzhen-based company needs to meet before applying to lift its two-year trading suspension, the report said.
The meeting will be followed by briefings for investors and media.
Despite the uncertainties facing the company, its 2021 notes have risen to 100 US cents, the highest since the new bonds were sold in July following a debt restructuring.
The rise has been driven by expectations that Kaisa shares will soon resume trading after the company in February restored the public float to the required 25 percent, Bloomberg said.
“It will take time to bring institutional investors back after such a long suspension,” said CIMB Securities analyst Raymond Cheng.
“But there will be some speculative buying if trading resumes,” he said.
Cheng noted that the company still has considerable assets in Shenzhen, where property prices continue to flourish.
As Sept. 30, 2015, Kaisa had a total land bank of 22.5 million square meters, according to the company’s senior adviser Tam Lai Ling.
Of its 87 property development projects, 18 are in Shenzhen.
Kaisa also has 10 urban renewal projects in the pipeline that may contribute about 3 million square meters in gross floor area for future development, Tam said. Nine of these projects are in Shenzhen.
The company’s woes began when Shenzhen authorities blocked the sale of some of its projects during a regulatory probe.
Founder Kwok Ying Shing agreed to sell his family’s stake to Sunac China Holdings Ltd., but the deal fell through.
Kwok then negotiated a restructuring of Kaisa’s debts, which was completed last July.
According to a company statement published on Feb. 27, 46.5 billion yuan (US$6.75 billion) of its onshore liabilities were restructured.
Kaisa issued US$3.03 billion new notes in July in exchange for its defaulted bonds and loans as part of the restructuring plan.
Total borrowings at end-September 2015 were about 63 billion yuan.
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