The edges of the quay are closer to the default after they have not extended their maturity Property

There is a growing risk of Chinese developers recovering as the property sector suffers from an unprecedented tight liquidity.

Chinese real estate developer Kaisa Group Holdings Ltd has said it failed to get the minimum 95 percent approval required by sea bond holders to extend the maturity of a $ 400 million banknote next week, increasing the risk of restoration.

With China’s real estate sector plunged into unprecedented tight liquidity, the country has a 6.5 per cent default on 7 December bonds and has renewed its focus on other developers who are also looking at the wall of sea debt that is due in the coming months. .

“To alleviate the current liquidity problem and provide an optimal solution for all stakeholders, the company is closely evaluating and monitoring the group’s financial and cash position,” it said on Friday.

Kaisa expected a $ 400 million 6.5 percent sea bond to be exchanged for new maturity banknotes on June 6, 2023 at the same interest rate if at least 95 percent of the holder agreed. He did not disclose how many accepted the offer.

Shares of the property company fell 9.8 percent to a record $ 0.92 ($ 0.12) in Hong Kong, and this year the share price fell to roughly 75 percent.

The company, which became a real estate developer in China that prioritized its dollar bonds in 2015, said it was talking to representatives of some bondholders, but has not yet reached a “legally binding agreement.”

He added that he was still considering selling assets and extending or renewing his debt obligations, but warned that there was no guarantee that he would meet the December 7 deadline.

Returning with creditors or failing to reach an agreement would have a “significant detrimental effect” on the Treasury’s financial situation, he said.

Kaisa is the second-largest issuer of Chinese real estate developers behind China Evergrande Group, which has more than $ 300 billion in liabilities, and like others has made efforts to raise capital to avoid a default.

Reuters reported last month that the company wanted to sell a listed property management unit in Hong Kong to Kaisa Prosperity Holdings Ltd.

Last week, in a bid to exchange its notes, Kaisa said he could consider an exercise in debt restructuring if the bondholders did not agree to extend the maturity.

The failure of the Kais to get the necessary rescue from its creditors will also weigh on other smaller developers who want to avoid lengthy and confusing litigation and restructuring processes, analysts said.

There is also the end of a 30-day grace period on the horizon Evergrande, which roughly avoids the defaults, after losing $ 82.5 million in coupons on Nov. 6.