Chinese developer Kaisa said it had reached a restructuring agreement with a key creditor group on Tuesday, as it seeks to stave off legal challenges that could see it liquidated in Hong Kong.The company said in a stock exchange filing that it would issue $5bn of bonds as part of the proposed restructuring. Investors would also receive $4.8bn of convertible bonds.

Kaisa’s plan comes after it defaulted in 2021, part of a wider reversal of fortune for many developers that profited from China’s property boom before the sector collapsed three years ago.

The company was the biggest borrower of offshore debt behind Evergrande, the developer at the heart of a property cash crunch that led to a spate of other defaults and continues to weigh on the world’s second-largest economy.