Bondholders offer China developer Kaisa another debt recast plan

Visual from the company website

A group of bondholders in debt-laden Chinese developer Kaisa Group Holding, including Farallon Capital and BFAM Partners, have drawn up a debt restructuring plan even as the company pushes ahead with its own proposal, a source close to the two funds said on Friday.

The bondholders proposal, which follows one launched by the company last month, had some additional benefits for investors with respect to the coupon, conversion price for the convertible bonds, collateral and capital buffer, the source said, without elaborating.

“We have presented a counter-proposal based on the company’s current terms which we do not believe introduces additional execution risk or complexity,” said BFAM Partners Chief Investment Officer Benjamin Fuchs.

“Our proposed terms provide a better outcome for bondholders and we believe they will gain widespread support.”

The source said the latest proposal offered bondholders a net present value of 87 percent versus the 75 percent offered by the company’s own proposal, besides providing better security and certainty of debt servicing.

Earlier this week, Kaisa, the first Chinese property developer to miss debt payments to overseas creditors, offered a one-off payment to creditors that consent to its debt restructuring proposal, sweetening an offer made two weeks earlier.

The Shenzhen-based developer owes around $2.5 billion to offshore creditors out of almost $11 billion worth of debt.

An email to the company seeking comment on this proposal was unanswered.

Also Read: Investors, led by Farallon Capital, float alternative debt plan for China developer Kaisa

Reuters 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.