Troubled Chinese property developer Kaisa defaulted yesterday on its 12.875% notes due 2017
and 8.875% senior notes due 2018. It’s still
unclear what this means for bankruptcy in China.
The default continues a saga that has run since
last December, when Kaisa chairman Kwok Ying Sheng resigned
– reportedly due to anti-corruption investigations.
In January the developer missed interest payments before making
the payments before the end of a 30-day grace period.
In that time developer Sunac has offered to purchase Kaisa
– but only if an agreement with bondholders can be
reached. An agreement has not yet been reached, and Kwok