Chinese real estate developer KWG Group Holdings Limited has announced plans for restructuring its offshore debt. The primary objective of the restructuring is to restore KWG’s normal operations.
The decision follows a default on US$119 million (850 million yuan) of principal on 2024 bonds and subsequent liquidity pressure. KWG has relied on internal cash resources and domestic funds for offshore payments, but funding for overseas debt remains strained.
The realtor – like almost every real estate agent in China- is grappling with adverse macroeconomic factors, negative credit events and limited financing channels in the industry. The group has appointed new lawyers and is in discussions with financial advisors while considering a sale of assets.
The decision to restructure aligns with action taken by other Chinese real estate developers facing similar problems.
