The desperate offshore bondholders of embattled Chinese developer Kaisa Group Holdings have offered to buy up to a US$1 billion worth of its onshore non-performing loans in the hope of bailing it out. New Money Consortium, a group of eight institutions holding more than US$2.5 billion worth of Kaisa’s US dollar bonds, has offered the new solution to the cash-strapped developer while waiting for it to disclose more details of its financial position, sources close to the matter told the Post . The consortium has offered to buy Kaisa’s non-performing loans from its onshore creditors, including banks, the sources said. This manoeuvre will also improve their loan recovery chances in case of a liquidation. Wednesday’s development comes after the group offered about US$2 billion in new funds to finance Kaisa earlier this month, making seven options available to the developer before its US$400 million bond matured on December 7. The consortium also offered an eight-page forbearance proposal on December 6, hoping to talk to Kaisa. The developer has, however, so far not taken any actual action in settling with offshore creditors, despite several zoom meetings and calls, sources said. The bondholders have been keen to bail out the Chinese developer as they want to prevent any disorderly enforcement by Kaisa’s onshore creditors, which could be value destructive for all stakeholders, the people familiar said. By giving Kaisa extra money and time for it to complete its projects and restore normal business operations, they hope to help it power through its current liquidity crisis and be able to repay its bondholders. Moreover, should their offer be accepted, these offshore creditors will then become Kaisa’s onshore creditors. Even in the worst-case scenario, if the company is liquidated, they will get priority. Kaisa has also not moved forward with a non-disclosure agreement (NDA) with Lazard, which is advising New Money Consortium in the matter, after agreeing to talk about the NDA’s terms, said the people familiar as well as another source. The agreement is meant to set the stage for further discussions on forbearance and financing solutions. Kaisa loses board control in Nam Tai after epic shareholders revolt The developer was downgraded to “restricted default” by rating agency Fitch Ratings on December 9, which said Kaisa had reportedly failed to make payments on its US dollar bond due on December 7 and had not responded to its requests for comment. Kaisa has US$11.4 billion in outstanding bonds coming due in 2026, and US$200 million in perpetual notes. Trade in its shares in Hong Kong was halted on December 8 .