The Chinese Treasury says the bondholders have not yet requested a quick refund from Reuters

(Reuters) – Kaisa Group said on Monday that it had not received any warning from bondholders to speed up refunds yet because the Chinese real estate developer had not returned a $ 400 million offshore bond.

The company said it had not even paid the $ 105 million coupon paid in 2023, 2025 and 2026, as the grace period for the first two had already expired.

Failure to pay the $ 400 million maturity on Dec. 7 resulted in an indirect indirect provision in all of its $ 12 billion offshore bonds, and Fitch Ratings pushed for a “reduced default”.

Kaisa is the second largest issuer of Chinese real estate developers behind China Evergrande Group, which has more than $ 300 billion in liabilities.

The fate of Kaisa, Evergrande and other indebted Chinese property companies has taken over the financial markets in recent months amid fears of adverse consequences, as Beijing has repeatedly sought to reassure investors.

Shares of Kais fell 8.7% to HK $ 0.84, the lowest record in a resumption of trading since December 8.

Kaisa said he was still talking to debt holders about a debt restructuring agreement and had hired Houlihan Lokey (NYSE 🙂 as his financial advisor and Sidley Austin as his legal advisor.

With Kaisa Lazard (NYSE :), an advisor to a group of offshore bondholders, to sign a non-disclosure agreement (NDA), Reuters reported, laying the groundwork for further discussion on tolerance and funding solutions.

The group is expected to use $ 1 billion to buy bad credit loans from Chinese land developers, sources said last week.

In Monday’s presentation, the developer added that after a sharp drop in sales in October and November, he hopes to keep the confidence of potential home buyers low in December.