(Bloomberg) -- A group of Kaisa Group bondholders have sent the beleaguered property developer a formal forbearance proposal, designed to buy time and avoid a default on $400 million dollar bonds due Tuesday.
China Evergrande Group is planning to include all its offshore public bonds and private debt obligations in a restructuring that may rank among China’s biggest, people familiar with the matter said. The company plans to “actively engage” with offshore creditors on a restructuring as grace periods on two dollar bond payments ended Monday. Its stock tumbled to a record low on Monday, while a dollar bond suffered its biggest drop ever.
Key Developments:
- Kaisa Creditors Offer Forbearance to Avoid $400 Million Default
- China Shifts Toward Easing With Property Downturn Hitting Growth
- Watch China Developers as Policy Makers Shift Toward Easing
- Shimao Says It Will Raise Net HK$1.17b in Top-Up Placement
- Evergrande Clarity? China Bank’s Offshore Issuance: BI APAC FICC
- China Property Prices Expected to Remain Steady in 2022: News
- Property, Policy Hold the Key to China 2022 Outlook: BI
- Kaisa Fails to Deliver Flats, Pay Wages in Guangzhou: CCTV
- Logan Group to Raise HK$1.17b in Share Placement
Logan Group, Shimao Raise Cash in Discounted Share Sales (8:32 a.m. HK)
Logan Group sold 172 million new shares at HK$6.80 each, a 9.9% discount to their last close on Monday, raising HK$1.17 billion ($150 million). The proceeds are earmarked for project investments and general working capital purposes.
Shimao Group also raised HK$1.17 billion from the sale of 145 million shares at HK$8.14 each to raise funds for debt repayments and general purposes. The offer price is about 8.5% below the last close of HK$8.90.
Kaisa Fails to Deliver Flats, Pay Wages in Guangzhou: CCTV (8:26 a.m. HK)
Kaisa is unable to deliver some residential projects to buyers and fails to pay salaries to some workers in Guangzhou, state broadcaster CCTV reported.
About eight projects have been halted, CCTV reports, citing the workers.
China Property Prices Expected to Remain Steady in 2022: News (6:57 a.m. HK)
China’s property prices are expected to remain “steady” in 2022, with the industry likely to see stable development, Shanghai Securities News reports, citing real estate research firm China Index Academy.
Second-hand home transaction volume in 50 Chinese cities saw about 2% growth in November from the previous month, the report said citing data compiled by KE Holdings Inc.
Watch China Developers as Policy Makers Shift Toward Easing (6:51 a.m. HK)
China’s property stocks may move after policy makers moved to expand support for the economy as a property-market downturn threatens to hamper growth into next year.
President Xi Jinping oversaw a meeting of the Communist Party’s Politburo on Monday that concluded with a signal of an easing in curbs on real estate.
The People’s Bank of China also on Monday said it will reduce most banks’ reserve requirement ratio by 0.5 percentage point next week, releasing 1.2 trillion yuan ($188 billion) of liquidity.
Kaisa Creditors Offer Forbearance to Avoid $400 Million Default (12:32 a.m. HK)
A group of Kaisa Group bondholders have sent the company a formal forbearance proposal, designed to buy the beleaguered property developer some time and avoid a default.
The creditor group, which is being advised by Lazard Ltd., sent the offer to Kaisa on Monday evening in Hong Kong, according to two people familiar with the matter. Kaisa declined to comment on the proposal.
A look at Evergrande’s maturity schedule:
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