ASIA-PACIFIC

摘要

Kaisa croup holdings met with onshore creditors last Monday in Shenzhen for restructuring talks, alongside representatives of Sunac China Holdings. Sunac has agreed to buy a 49% stake in Kaisa, subject to the completion of debt restructuring. Kaisa said it would engage with its offshore creditors on a restructuring proposal as soon as possible, with the intention of reaching an agreement before the end of next month and completing the restructuring in April. The company said it would put forward a proposal for offshore bondholders in early March. Houlihan Lokey is advising on the restructuring. The Chinese property developer said its onshore and offshore liabilities totalled Rmb65bn (USS10.4bn) at the end of last year, having doubled since June, of which Rmb48.0bn were onshore liabilities, owed to banks (Rmb12.4bn) and non-bank financial institutions (Rmb35.6bn), and Rmb17bn were offshore. So far, Kaisa has managed to avoid technical default, though it was late paying a coupon on its 2020 dollar bonds in January. Bonds in the Kaisa complex were seen in the 50s on Tuesday, with the 2018s two points lower at 55/58, though there was little trading as bondholders waited for further details of its restructuring plans.