Chinese real estate developer Kaisa Group Holding Ltd. on Friday said the company has failed to secure the minimum approval of 95% from offshore bondholders to extend the maturity of $400 million note which is due next week.
Earlier last week, Kaisa announced to exchange its 6.5% offshore bonds due December 7 for new notes due June 6, 2023 that will come with the same interest rate. At least 95% of holders needed to approve for the offer to move forward.
Kaisa in a filing said, “the exchange offer and consent solicitation will not proceed and shall lapse automatically.”
This raises high possibility of default for Kaisa next week which would mark its second default.
