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Investing.com-- Shares of Kaisa Group (HK:1638) surged on Tuesday after the embattled Chinese developer said its long-delayed offshore debt restructuring had formally taken effect, marking a milestone for one of the most indebted property firms in China.
Kaisa said all restructuring conditions were satisfied and the effective date occurred on Sept. 15, according to a stock exchange filing.
The plan involves discharging existing claims in exchange for new notes and mandatorily convertible bonds worth a combined $13.4 billion, which are set to be listed on the Singapore Exchange from Sept. 16.
Hong Kong-listed shares of the company surged as much as 38% to HK$0.22. The stock traded 24% higher at HK$0.2 as of 03:58 GMT.
The restructuring also cancels a raft of the company’s defaulted offshore bonds, many dating back to 2021 and 2022, offering long-awaited relief to creditors.