(Bloomberg) -- Chinese developer Jinke Properties Group Co. aims to release its court-supervised onshore debt restructuring in weeks, said people familiar with the matter, in what would be the first such plan for a major builder since China’s property crisis began.
Under the plan, the company would make cash payments of as much as 50,000 yuan ($6,902.80) to each bondholder, the people said, asking not to be identified as the matter is private. The remainder of the debt would be repaid via options including a debt-to-equity swap and a trust product, the people said.
If the plan is successful, it would make Jinke a standout among its peers. No other major developer has completed a restructuring of its debt in an onshore court since China’s property slump started more than three years ago. It could also serve as a road map for other companies struggling to find ways to repay debt.
Jinke didn’t immediately reply to requests for comment.
Jinke has chosen a consortium of two local firms to serve as a white knight for the court-supervised restructuring, according to a filing to the Shenzhen Stock Exchange dated Nov. 22.
In a 2022 disclosure, Jinke said it missed a payment on a local bond. That was followed by a company disclosure in June 2023 that a construction firm vendor had filed a reorganization petition against it.
Jinke’s only dollar bond was trading at less than seven cents on the dollar Monday, according to Bloomberg-compiled data. Shares of the Shenzhen-listed builder were trading at 1.65 yuan per share on Monday, down 85% from a high in August 2020, according to Bloomberg-compiled data.
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