Adds details in debt restructuring talks, background
Dec 20 (Reuters) – Kaisa Group 1638.HK said on Monday it has not received any notice from bondholders to accelerate repayments yet as the embattled Chinese property developer has not repaid a $400 million bond, or interest on notes due in 2023 and 2025.
The property developer did not repay $400 million of bonds that matured on Dec. 7, triggering cross-default provision on all its offshore bonds and prompting a downgrade to “restricted default” by Fitch Ratings.
Kaisa is the second-largest dollar bond issuer among China’s property developers after China Evergrande Group 3333.HK, which has more than $300 billion in liabilities.
The troubles of China’s property sector have gripped financial markets in recent months amid fears of knock-on effects around the world.
Kaisa said it was still in talks with bondholders over a debt restructuring deal and it had hired Houlihan Lokey as its financial adviser and Sidley Austin as a legal adviser.
(Reporting by Arundhati Dutta and Nikhil Kurian Nainan in Bengaluru; Editing by Daniel Wallis and Stephen Coates)
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