Chinese construction company Kaisa Group Holdings has seen its efforts to restructure its debt become more complicated after Singapore-based hedge fund Broad Peak Investment Advisers filed a winding-up petition against the company in a Hong Kong court, according to a report by Bloomberg.
The report cites a court filling made on Monday as revealing that Broad Peak took the court action over the alleged nonpayment of RMB170m ($24m) of offshore bonds.
Kaisa has responded by saying that it will “seek legal measures to resolutely oppose the petition” and that it plans to continue working with offshore creditors on a restructuring plan, adding that is aiming to announce terms “as soon as practicable.”
Shares in the business fell 16% in Hong Kong on Monday to a new record low. Data compiled by Bloomberg reveals that the company’s value has plummeted to $157 million from $3.5 billion in 2021.
