Troubled Chinese property developer Kaisa Group Holdings Ltd. has asked its onshore creditors to restructure 47.97 billion yuan (US$7.65 billion) of debt by extending payment terms and reducing interest payments.
The onshore debt included 12.42 billion yuan due to banks and 35.55 billion yuan owed to non-bank financial institutions as of the end of 2014, the Wall Street Journal reported.
The Hong Kong-listed company said the proposed debt restructuring wouldn’t involve a reduction of any onshore creditor’s principal debt claim, the newspaper said.
It didn’t identify the onshore creditors involved or give further details.
The proposed debt restructuring is one of the conditions required for Sunac China Holdings Ltd. to complete its acquisition of a 49.25 percent stake in Kaisa.
Kaisa missed a US$23 million interest payment on an offshore bond this year.
Investors are concerned about how the company will refinance its debt, especially after many of its creditors demanded early repayment and have asked Chinese courts to freeze some of its bank accounts, the report said.
Shares of Kaisa, which resumed trading Tuesday after being suspended Monday, rose 2.56 percent at the close.
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