![]() ![]() Evergrande's stock has plunged 88% this year. Trading in Kaisa's shares, which have lost 75% this year, was suspended on Wednesday. 7 for new notes due June 6, 2023, at the same interest rate. Evergrande had about 20bn in international bonds at the time of its default and proposed providing investors with notes linked to the group’s listed subsidiaries in Hong Kong. Kaisa's default came after it failed last week to secure the minimum 95% approval needed from offshore bondholders to exchange the bonds that were due Dec. Kaisa is also in talks with another bondholder group, the first person said. Other financing ideas are also on the table. The poster child of China's property crisis China Evergrande Group was officially declared in default by credit rating agency S&P Global on Friday after the sprawling firm missed a bond payment. The group previously offered $2 billion in fresh debt to help Kaisa repay its onshore and offshore debts, sources have said. ![]() 7, sent the company draft terms of forbearance late on Monday. The group of Kaisa offshore bondholders, which says it owns 50% of the notes that were due on Dec. Kaisa said it was open to talks on forbearance, but declined to comment on details. The NDA will lay the groundwork for further discussions on forbearance and financing solutions, the people said, who declined to be named as the talks are confidential.īut an agreement is unlikely in the next few weeks as the talks are still at an early stage, the first source said. Evergrandes entire 22.7 billion worth of offshore debt including loans and private bonds is deemed to be in default after missing payment obligations late last year. The bondholders hold over 25% of Kaisa's $12 billion offshore bonds. Kaisa is expected to soon sign a non-disclosure agreement (NDA) with Lazard, the adviser of a group of bondholders, the source and another person told Reuters. The UK-listed asset management firm had exposure to both Evergrande and Kaisa bonds, according to recent filings. Now, bond investors are once again holding their breath as. "Banks and bondholders (both local and foreign) will welcome debt re-profile exercises from companies with liquidity problems, as long as they are conducted in a fair, transparent and candid manner," Gustavo Medeiros at Ashmore Group (ASHM.L) wrote in a recent note to clients. Since the onset of China’s wave of defaults last year, this has been the first clear case of a company that was too big to fail. Fitch said there was limited information available on Kaisa's restructuring plan after it missed $400 million in offshore bonds repayment on Tuesday.Įvergrande said last week it planned to forge ahead with a restructuring of its debt. ![]()
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