Kaisa in bondholder talks over default threat
The threat of default loomed over Chinese property firm Kaisa on Friday (December 3).
The company announced it had failed in talks with offshore bondholders to extend the maturity of a $400 million debt payment due next week.
Kaisa has now begun talks with some of those bondholders over extending the deadline.
That's according to two sources close to the matter.
A group of offshore bondholders who say they own 50% of the debt in question sent Kaisa a letter earlier this week.
They offered extra time to negotiate the repayment of the bond and avoid a default.
They also put forward an offer to provide $2 billion of fresh funding to the company, but sources say major progress has not been made on the offer.
Shares in the troubled Chinese firm dropped sharply on Friday (December 3) - at almost 9%.
The stock has fallen around 75% so far this year.
Kaisa said it was still looking into selling assets and extending or renewing debt obligations.
But the company cautioned there was no guarantee it would be able to meet the December 7 maturity deadline.
Kaisa is second behind Evergrande as the largest dollar bond issuer among China's property firms.
Evergrande is also in trouble, with more than $300 billion in liabilities.
Like Kaisa, Evergrande has looked for ways to raise capital to fight off a default.
