Chinese developer Kaisa Group Ltd, mired in crisis since late last year after the local government in its home base of Shenzhen blocked sales at some of its projects, is seeking to restructure its debts, according to an exchange filing in Hong Kong on Sunday.
The restructuring plans, which are subject to creditors' review, involve cutting the interest and extending the maturity on its offshore bonds and convertible bonds, Kaisa said. It will also propose amendments to its offshore loans, although details of this have not been revealed.
The mid-sized developer, with debts of $2.5 billion, faces the prospect of being the first Chinese property company to default on an offshore debt if it fails two bond coupon payments due this month.