Kaisa of China says those who have a bond do not ask for immediate repayment | Assets

The landlord did not repay the $ 400m maritime debt amidst the real estate market crisis.

Kaisa’s group said it had not received any notification from the owners of the bond to speed up the repayment so far as the Chinese-based landmaker had not returned the $ 400m pledge to the beach.

The company said on Monday it had not paid the $ 105m coupon for tickets due in 2023, 2025, and 2026, when the grace period for the first two had already expired.

The unpaid $ 400m maturity on December 7th initiated a settlement of all its $ 12bn offshore bonds and caused them to be downgraded to “unstable” by Fitch Ratings.

Kaisa is the second largest dollar lender among Chinese real estate developers after the China Evergrande Group, which has more than $ 300bn in debt.

The future of Kaisa, Evergrande and other Chinese debtors has gripped the financial markets in recent months amid fears of a collapse, with Beijing repeatedly trying to reassure investors.

Kaisa shares fell 8.7 percent to HK $ 0.84 in the first quarter on a resumption of trading, a record low, suspended from December 8th.

Reconciliation agreement

Kaisa said he was still in talks with the bond owners over the debt restructuring agreement and listed Houlihan Lokey as their financial advisor and Sidley Austin as their legal adviser.

Kaisa was in talks with Lazard, an adviser to the Coastal Bonds Association, to sign a non-disclosure agreement (NDA), Reuters reports, setting the stage for further discussions on patience and financial solutions.

The group is planning to spend up to $ 1bn to buy bad debts from Chinese lenders, sources said last week.

In a note on Monday, the manufacturer added that after a sharp drop in sales in October and November, it is expected that confidence in potential buyers will remain low in December.