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Struggling China developer Kaisa says won't report 2014 results on Tuesday
[HONG KONG] Troubled Chinese property developer Kaisa Group Holdings said it would not report its 2014 results as scheduled on Tuesday as it needed more time to assess its cash flow.
The Shenzhen-based company, which is expected to post an annual net loss, also asked the Hong Kong stock exchange to suspend trading in its shares until it is able to release its financial statement. The stock closed down 1.9 per cent at HK$1.56 on Monday.
The company has been mired in crisis since local authorities blocked sales of some projects last year. It is currently negotiating with its bondholders on restructuring its US$2.5 billion debt to avoid becoming the first Chinese developer to default on its offshore debt.
Larger peer Sunac China Holdings, which has proposed a takeover, urged the bondholders to accept Kaisa's debt restructuring plan or risk the company running out of cash by end-April.
Kaisa's debt woes underscore the risk developers face in China's slumping property sector, which has been hit by the slowing economy and a raft of cooling measures.
Official data showed average new home prices fell at the fastest pace on record in February, also raising concerns about the finances of the highly leveraged developers.