What a Kaisa Dollar Debt Default Could Mean for Creditors
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Kaisa Group Holdings Ltd. may miss $52 million of interest payments on two of its offshore bonds, becoming the first Chinese real estate company to default on its U.S. currency debt.
With the notes’ sale documents containing cross-default clauses that would allow other creditors to call in their money, this could spell more trouble for the heavily indebted Shenzhen-based developer. Here’s what is happening and what to expect.