Dismantling a Chinese developer could get ugly

Beijing

TEARING down a house is straightforward. Dismantling the company that built it is anything but. Chinese developer Kaisa, which has defaulted on a HK$400 million (S$69 million) bank loan, is heading inexorably towards a debt restructuring that could expose the flimsy structures on which foreign investors rely. The real estate group on Jan 7 denied reports that its board has decided to wind up the company. Yet some kind of reorganisation may be hard to avoid. …