2015-03-25

Last Minute Negotiations for Kaisa

China's Kaisa will die soon if creditors "do not cooperate," Sunac warns
Mainland developer Sunac China said on Tuesday it does not have much room to back down from an initial failed debt restructuring proposal to keep troubled Kaisa Group afloat as the firm it is buying is in much worse shape than expected.

“If creditors do not cooperate, the deal will not go through and we will surely give up,” chairman Sun Hongbin said. “The possibility (of a successful deal) is diminishing as Kaisa is now in a much worse situation than we expected.”

Kaisa had total debts of over US$10 billion as of the end of last year. Sun said Sunac had spent almost HK$10 billion yuan on Kaisa, which could otherwise have not survived last month’s Lunar New Year festival.

“If you don’t think you bought the wrong bond and still regard it as a good company, you just wait for it to die,” Sun said.

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