Kaisa Seeks Relief on $7.6 Billion Onshore Debt Amid Buyout

Kaisa Group Holdings Ltd., the troubled Chinese developer whose projects are blocked in Shenzhen amid a corruption probe, is asking onshore creditors to relax terms on some $7.6 billion of debt.

Kaisa is looking to extend the maturity and cut the interest it pays on 12.4 billion yuan ($2 billion) of debt due to banks and 35.6 billion yuan owed to mainland Chinese non-bank financial institutions as of Dec. 31, according to a Hong Kong stock exchange statement. The company’s $500 million of 10.25 percent notes due 2020 dropped 2.1 cents to 57.3 cents on the dollar as of 5:50 p.m. in Hong Kong. Its shares, suspended on Monday, climbed as high as 7.7 percent before closing up 2.6 percent at HK$1.60.