Property developer Kaisa Group files for Ch-15 restructuring

Kaisa Group Holdings Ltd., a Shenzhen, China-based property developer filed a Chapter 15 petition (Case: 16-11303) in the Manhattan court on 5 May 2016. The company used this provision of U.S. bankruptcy law to deal with U.S. creditors or lawsuits when reorganizing in a Hong Kong court.

Kasia had $14.9bn in debt, backed by $16.1bn of assets.

Kaisa stated that holders of 96% of its offshore debt, supported the company’s restructuring agreement negotiated in the Hong Kong.

The company anticipates that the Hong Kong court will approve its restructuring plan.

Further, the company plans to meet with creditors on 20 May 2016.

Source: Bloomberg

Abengoa and its U.S-based subsidiaries file for bankruptcy

Spain-based renewable energy company Abengoa S.A.’s subsidiary Abeinsa Holding, along with 13 affiliated debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware (lead case number 16-10790).

The company is represented by R. Craig Martin of DLA Piper. Documents filed with the court state that global slowdown, distress within the energy sectors and a over leveraged balance sheet led to the filing of bankruptcy.

Parent company Abengoa S.A. itself filed for Chapter 15 protection on 28 March 2016. The company had received backing from 75% of its lenders, 15.04 % more than the required threshold of 60%, to  approve its restructuring plan.

Abengoa would present, as part of its restructuring, a plan to file Chapter 11 bankruptcy for all its affiliates in the United States and Chapter 15 for all affiliates to apply for creditor protection and a homologation of the agreement in the US. This move would permit the company to complete the Financial Viability Plan that has already been accepted by lenders.

Further, Abeinsa Holding’s Chapter 11 filing follows the 24 February 2016 Chapter 11 filing of Abengoa Bioenergy U.S. Holding and affiliated debtors. Abeinsa Holding’s Chapter 11 petition indicates total assets greater than $1bn.

Source:BankruptcyData