Kaisa offers sharp haircut but milder than expected

Hong Kong

A DEBT restructuring plan put forward by Chinese developer Kaisa Group Ltd has steered away from a doomsday scenario for creditors painted in an earlier report, offering an implied haircut that is severe but not too far off current market prices.

Mired in crisis after the local government in its home base of Shenzhen blocked sales at some of its projects last year, Kaisa needs to get bondholders to agree to its proposals or risk becoming the first Chinese property company to default on offshore debt. Two interest payments are due this month.