China developer Kaisa says no resolution on winding up, restructuring
HONG KONG (Reuters) - Chinese property developer Kaisa Group Holdings Ltd on Wednesday denied media reports that it had passed a resolution in relation to the winding up and restructuring of the group, a day after partners in two projects terminated cooperation deals.
Kaisa said in a statement responding to "certain news articles" that no board meeting had been held on January 6 and it had not passed any resolution to wind up and restructure the company.
Sina.com.cn had reported on Tuesday that Kaisa's board of directors had approved the winding up and restructuring.
"The company is currently assessing the overall impact on the financial position as a result of the recent developments of the group," co-chairman Sun Yuenan said in a filing to the Hong Kong bourse.
Kaisa will publish an announcement to provide an update as soon as possible, it added.
The statement came a day after Kaisa said partners of two of its urban redevelopment projects in the southern city of Shenzhen planned to terminate cooperation deals and demand a refund of 1.2 billion yuan (128 million pounds).
Last week, Kaisa warned it may default on more debt, having failed to repay HSBC a HK$400 million (34 million pounds) loan, the latest developer to flag financial difficulties amid a downturn in China's real estate sector
Shenzhen-based Kaisa, with a market value of HK$8.2 billion, is one of the smaller listed developers, and has also been hit by departures of senior management.
(Reporting by Donny Kwok; Editing by Stephen Coates)
