City Searching for New Investors for Kaisa Group Holdings
The city government is planning to hold talks with property developers as they plan to orchestrate investments in Kaisa Group Holdings Ltd. and it’s stakes will not be sold at a discounted price. Kaisa, is a developer that is based in Shenzhen failed to reach the US$ 23 million coupon payment that was due in January on its US$500 million of their planned 2020 dollar bonds. Which placed a risk in becoming the first estate company in defaulting on it’s currency debt.
The company along with several of its projects in Shenzhen is blocked along with its key executives and chairman quitting. The city government still doesn’t reveal any information on this matter and refuses to comment. Plus a number of offshore claims are alredy been made over the company’s assets.
Furthermore the Dalian Intermediate People’s Court in northeastern Liaonoing Province have already frozen the company’s 540 million yuan in deposits as part of the lawsuit being filed. Investors of the Kaisa trust were already repaid their principal with interest since the product will be transferred to a third party that is willing to assume the obligations.