Investing.com-- Chinese property developer Kaisa Group Holdings (HK: 1638 ) has secured approval from a Hong Kong court for its offshore debt restructuring plan, clearing a key hurdle in its bid to manage more than $12 billion in outstanding offshore borrowings, Bloomberg reported on Monday citing sources familiar with the matter.
The ruling follows a review by Hong Kong High Court Judge Linda Chan, who had earlier reserved her decision to clarify certain matters, Bloomberg reported.
Kaisa had also agreed to reduce a creditor work fee to 1%, a point of contention during the hearings, the report stated.
Several distressed developers in China have struggled to meet restructuring commitments amid ongoing liquidity pressures in the property sector.
Kaisa still faces a winding-up hearing on March 31, which could further impact its financial recovery, according to the report.
Kaisa defaulted on a bond in 2021 and was sued for liquidation in 2023, making it one of the most indebted firms in the sector.