Chinese developer Kaisa fails to extend a $ 400 million bond

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Shanghai (China), Dec 3 (EFE) .- The indebted Chinese developer Kaisa announced today that it has not obtained sufficient approval from its bondholders to extend an ‘offshore’ package of 400 million dollars that expires on December 7 and that the company does not guarantee that it will pay.

Kaisa needed 95% of the bondholders -that is, the holders of 380 million dollars- to accept the proposal, which involved exchanging the securities for others with the same interest, of 6.5%, but that would expire in June 2023 instead of next week.

Having not reached the aforementioned percentage, the offer “expired automatically”, so the bond package in question will continue to expire on the date initially scheduled.

“There are no guarantees that the company can meet its payment obligations on the maturity date” of these bonds, Kaisa said in a statement sent to the Hong Kong Stock Exchange, where it is listed.

The developer is “evaluating” its financial condition to “try to alleviate its current liquidity problems and achieve an optimal solution for all parties”, considering options such as renewing loans or disposing of assets.

In 2015, Kaisa became the first Chinese property developer to default on one of its offshore bonds.

International investors are closely monitoring the situation in the Chinese real estate sector, in which some companies face liquidity problems due to the restrictions that Beijing imposed on access to bank financing for the most indebted developers.

The most representative case is that of Evergrande, which accumulates a liability of more than 300,000 million dollars (about 265,000 million euros), although it has not yet officially defaulted on any of its bonds, something that other companies have done. of the sector such as Sinic or Modern Land.

(c) EFE Agency

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