(Nov 25): 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 (RM30,822) 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 reorganisation petition against it. 

Jinke’s only dollar bond was trading at less than seven cents (31 sen) on the dollar on 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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