2015-04-20

Kaisa Officially Defaults

Bloomberg: Major Chinese Developer Says It Can’t Pay Dollar Debts
The company didn’t pay $52 million of interest on 2017 and 2018 notes due last month, according to a Hong Kong stock exchange statement Monday. Kaisa had until Monday to make the payments after a 30-day grace period expired at the weekend.

The default at Shenzhen-based Kaisa follows a series of mishaps since December, capped by the surprise return of founder Kwok Ying Shing last week. The developer has sought ways to service 65 billion yuan ($10.5 billion) of debt owed to both onshore and offshore lenders while also becoming embroiled inPresident Xi Jinping’s crackdown on graft.

Kaisa “is focused on facilitating the release of its 2014 audited financial results,” according to its statement. Following that release, the company “will continue its efforts to reach a consensual restructuring of its outstanding debts.”

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