Top 20 Developer Kaisa Calls It Quits, Ceases Operation

Kaisa quickly went from default (Top 20 Developer Defaults) to bankruptcy.

Mingtiandi has a good roundup: KAISA DECLARES BANKRUPTCY HALTS PAYMENTS TO CREDITORS

According to reports in the local media, Kaisa’s board met this afternoon and decided to halt operations. The board decision came the same day that the company announced that two of its project partners are claiming the Shenzhen-based company has failed to meet its obligations and are demanding RMB 1.2 billion ($196 million) in refunds.

The HSBC loan default, as well as the declarations from the company’s partners revealed today had put the developer, which as recently as two years ago had ranked 17th among China’s biggest real estate companies, at risk of other creditors calling in loans and debentures under cross-default clauses.

Kaisa’s bankruptcy is likely to pour cold water on investor enthusiasm for shares and bonds from China’s real estate developers, just as the sector had been enjoying a rally on local and regional markets.

And those bonds are increasingly U.S. dollar denominated...