Some Kaisa bondholders said to tap adviser to help recover payments

News

Reuters reports

It is said that some offshore bondholders of Kaisa who did not receive coupon payments this month have tapped investment bank Moelis & Company to advise them on how to go about the situation, citing a source with direct knowledge on the matter.

For some context, Kaisa has not paid coupons totaling over $59 million that were due on 11 and 12 November (both have a 30-day grace period) and are facing another dollar bond maturity worth $400 million due on 7 December.

There was also a report by Bloomberg earlier suggesting that an ad hoc group of offshore bondholders have also sought advice from lawyers at Kirkland & Ellis.

As much as Evergrande is the big name, let’s not forget that other Chinese property developers are also facing similar uncertainties and Kaisa is the next big name on that list as the firm holds the most offshore debt after Evergrande.

The fact that third parties are called in to try and remedy the funds does say a lot about the confidence and likelihood that Kaisa will be able to meet those obligations.

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