Rating agencies' views differ on Kaisa default

Author: Ashley Lee | Published: 21 Apr 2015

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 returned...