Chinese developer warns he may fail to post $ 400 million bond


BEIJING (AP) – A Chinese real estate developer on Friday warned that he may not repay a $ 400 million bond due next week, adding to financial strains in an industry struggling to avoid defaults on billions of dollars. dollars of debt.

Hong Kong-headquartered Kaisa Group Holdings Ltd. said it tried to renegotiate debt owed on Tuesday, but too few bondholders agreed to unspecified terms.

“There is no guarantee that the company will be able to meet its repayment obligations,” said a statement from Kaisa issued via the Hong Kong Stock Exchange.

He did not say if there was a grace period before he was declared in default, which may trigger the obligation to immediately repay other debts.

Some Chinese developers are struggling to reduce their debt after regulators tightened limits on the use of borrowed money last year. This is fueling fears of possible defaults and turmoil in the financial markets.

Investors fear the most, Evergrande Groupe, the largest debtor in its global industry, could collapse with a debt of 2,000 billion yuan (310 billion dollars).

Chinese central bank officials have tried to reassure investors that the financial system can be shielded from Evergrande’s problems. Economists say Beijing can step in to make sure there is enough money in the loan markets, but wants to avoid sending the wrong signal by bailing out Evergrande or other developers.

Kaisa said he will be looking at options, including selling assets.

The company claims to have more than 17,000 employees, 310 billion yuan ($ 49 billion) in assets and operations in more than 50 Chinese cities. It has strengths in property development, tourism, hotels, maritime transport and health.

In October, mid-sized developer Fantasia Holdings Group announced that it had failed to make the $ 205.7 million payment owed to bondholders.

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