Kaisa Offshore Bondholders Offered A Deal: Take It, Or Get 97.6% Haircut

Bring you joyful living and/or cents on the dollar

In the liquidation of the Company, a substantial majority of the Company’s onshore creditors are expected to be impaired (that is, recoveries below the face value of their debt claims). Based on a preliminary review, the estimated recoveries to offshore creditors in a liquidation are expected to be approximately RMB980 million (equivalent to approximately HK$1,242 million) or approximately 2.4%.

Some figures from the Chinese article below.

Kaisa's debt load went from 35.2 billion yuan in July 2014 to 65 billion yuan today. About half of that debt is coming due in 2015. As debt was rising from July 2014, Kaisa's cash balance has gone the other way, collapsing 83%.

iFeng: 佳兆业：债务重组如不成功 准备进入破产清算

The details of the proposed restructuring is here: PROPOSED OFFSHORE DEBT RESTRUCTURING