Kaisa Moves Closer to Default After Bondholders Reject Swap
- Firm will explore solutions including asset sales: statement
- Kaisa required 95% approval rate for debt swap to pass
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Kaisa Group Holdings Ltd. failed to win bondholder approval for a debt swap, putting the Chinese developer on course for a default unless it can reach a last-minute agreement with creditors to delay payment.
The firm had sought to exchange its $400 million of dollar notes maturing Tuesday for new ones due 18 months later. The offer failed to meet the required 95% approval rate, according to a statement from the company. Kaisa shares tumbled almost 10% to a record low, while its dollar notes were little changed.