Trading in embattled Chinese developer Kaisa suspended over new default concerns
- The company is facing repayment on a US$400 million bond due Tuesday, after it failed to win approval for a bond swap that would have extended the deadline
- New Money Consortium, which owns more than 50 per cent of the outstanding bond, earlier offered about US$2 billion in new funds to finance Kaisa, sources said
Trading in shares of embattled Chinese developer Kaisa Group Holdings was suspended on Wednesday amid concerns over whether the home builder will default again.
The suspension was “pending the release by the company of an announcement containing inside information”, according to the Hong Kong stock exchange.
The company is facing repayment on a US$400 million bond that was due Tuesday, after it failed last week to win approval for a bond swap that would have extended the repayment deadline by 18 months.
On Monday, a group of Kaisa noteholders sent the company a forbearance proposal with more detailed terms for negotiation, people familiar with the matter said, but the outcome of the talks is uncertain.
New Money Consortium, a group of bondholders which says it owns more than 50 per cent of the US$400 million bond, had earlier offered about US$2 billion in new funds to finance Kaisa through seven options, according to a presentation seen by the Post.
It includes selling convertible bonds that can be exchanged for equity shares in some of the developer’s listed units.