On the evening of November 24, Kaisa Group Holdings Co., Ltd. (01638.HK) issued an announcement stating that the shares of the applied company will resume trading on the Stock Exchange from 9 am on November 25, 2021.
Before that, due to the overdue payment of wealth products issued by Shenzhen Jinheng Wealth Management Co., Ltd. and guaranteed by Kaisa Group (Shenzhen) Co., Ltd., Kaisa Group’s shares have been Trading will be suspended from November 5th.
This time, The announcement disclosed by Kaisa shows that it has issued wealth management products with a principal amount of approximately RMB 1,493.4 million on behalf of several member companies of the group and its associated companies. Expires in October and November 2021. As of the date of this announcement, repayment measures have been implemented for wealth management products with a principal amount of approximately RMB 1,096.8 million.
The above measures include the redemption of 10% of the principal amount and interest from the 20th day of the month when the relevant principal amount is due, and every three from the due date Another 10% of the principal amount and interest will be redeemed each month; and the outstanding principal amount will be paid to the holder with deferred interest at an interest rate of 4.35%. For the remaining principal amount of approximately RMB 396.6 million, the issuer of the relevant product is negotiating the repayment measures with the relevant holder.
Kaisa said that in order to increase the liquidity of the group, the group is considering measures such as speeding up the sale of real estate projects and high-quality assets.
Prior to this, Kaisa issued an announcement on the “Jin Heng Wealth Product Redemption Plan” on November 22. According to the plan, Jin Heng Wealth’s products will expire In time sequence, the principal and interest will be paid in succession by means of payment in installments.
The redemption plan shows that for the principal due to investors, 10% will be redeemed in the month of maturity, and 10% will be redeemed every 3 months thereafter; for investor interest, No interest is paid before the principal expires. Along with the principal, 10% will be redeemed in the month when the principal expires, and 10% will be redeemed every 3 months thereafter.
For the deferred principal, the deferred interest will be paid to the investor according to the one-year commercial loan benchmark interest rate of 4.35%. The deferred interest begins to accrue from the maturity date of Jinheng Wealth’s products and ceases to accrue after the final principal payment is completed. The deferred interest payment is the payment of 50% in the third month after the last principal and interest due, and the payment is completed in the sixth month.
Centralized redemption of Jinheng Wealth Property on the 20th of each monthThe principal, maturity and deferred interest of the product. Whether it is due on the 1st of the current month or the principal, due interest and deferred interest due on the 31st of the current month, all will be redeemed uniformly on the 20th of the current month.
In addition, Kaisa stated in the announcement that its publicly denominated US dollar bills have a 30-day grace period. According to its public notes denominated in US dollars, the interest payment grace periods of approximately US$58,501,300 and US$29.875 million due in November 2021 will expire on December 11, 2021 and December 12, 2021, respectively. Except for those disclosed above, there are no other interest payments due under its outstanding USD denominated public notes. As of the date of this announcement, none of the company’s outstanding public notes denominated in US dollars have expired. The company is considering taking measures (including issuing an exchange offer) on its outstanding USD 400 million public bill, which will expire on December 7, 2021.
The announcement shows that as of the date of this announcement, certain members of the group have not fulfilled their repayment obligations under the financing agreement, including bank loans and certain other borrowings. The company is assessing the group’s repayment responsibilities in order to formulate an overall plan that takes into account the interests of all its stakeholders and solve the liquidity problems faced by the group.
According to Kaisa’s stock price, Kaisa reported HK$1.01 per share before the suspension.