Kaisa Group Holdings Ltd. has no plan to introduce new equity investors at the moment as its founder only recently returned, said the company’s chief of restructuring.
The top priority is to lift sales blockage on the developer’s Shenzhen projects as soon as possible so it can sell apartments and generate cash, Tam Lai Ling said in a phone interview. Tam is Kaisa’s former vice chairman and resigned with founder Kwok Ying Shing last year, before being brought back in May to lead the restructuring of the company’s debt of 65 billion yuan ($10.5 billion).
Shenzhen-based Kaisa, which was involved in an anti-graft probe, in April became the first Chinese developer to default on offshore dollar bonds. Its fate was thrown into doubt when rival Sunac China Holdings Ltd. abandoned a proposed acquisition in May after failing to make progress with Kaisa bondholders over terms of a rescue after months of negotiations.
Tam said he is optimistic about resolving Shenzhen blockage given the projects’ high asset quality. The company is still talking with onshore and offshore debt holders, and he hopes to give debt holders the timetable for a new restructuring plan by late next week, Tam said.
Kaisa’s $800 million 8.875 percent bonds due 2018 was little changed at 64.931 cents on the dollar as of 11:11 a.m. in Hong Kong.