Kaisa Group warns of under 5% recovery rate in potential liquidation

Photo by Eric Prouzet on Unsplash.

Facing severe financial difficulties, Kaisa Group, a prominent Chinese property developer, has forewarned creditors of a less than 5% recovery rate, should the company be driven into liquidation. This was the chilling forecast laid out by a legal representative for one such creditor who is currently pursuing a lawsuit against the beleaguered company. The revelation was made in a Hong Kong courtroom on Tuesday.

Broad Peak Investment Advisors had previously initiated a winding-up petition against Kaisa Group in July, taking the fight to the Hong Kong High Court. This was due to non-payment of onshore bonds amounting to 170 million yuan (876 million baht).

Broad Peak Investment Advisors’ move against Kaisa is part of a larger pattern that has seen a number of Chinese developers face winding-up petitions after the sector was…