Chinese property developer Kaisa's restructuring process has
finally come to an end, but investigations into the
company’s unexplained cash payments - and the
audit process - remain unfinished.
After failing to obtain creditor approval for its
restructuring plan last February, Kaisa won support from over
80% of its offshore bondholders in March, and subsequently
obtained US court protection.
But counsel on the deal have explained how accounting
irregularities and limited audited financials created
challenges for the implementation of the inter-conditional
schemes of arrangements in Hong Kong and the Cayman
"Although these deficiencies were acknowledged in the
explanatory statement, they were not ideal and added a level of
complexity and uncertainty for scheme creditors," said
Neil McDonald, partner at Kirkland & Ellis in Hong
Kong, who acted for a steering committee of offshore bondholder
The Hong Kong-listed property developer failed to pay the
interest due on its 2020 bonds in...