Asia Pacific: Learning by default

Author: | Published: 22 Jan 2015

The likely default of Kaisa called into question the structures of offshore Chinese bonds. Across Asia, restructuring lawyers have more or less thought 'I told you so', as bondholders responded last month by selling their Chinese real-estate holdings in fear of future defaults.

The circumstances leading to Kaisa's situation are convoluted. It failed to register presale agreements for three of its projects in Shenzhen for reasons that are still unknown.

Then its chairman resigned, which triggered a key man provision...