HONG KONG: China property developer Kaisa Group Ltd will hold a conference call for its offshore bondholders next week to discuss a proposed restructuring plan, a notice on the company's website said.
The call, to be held on Monday morning at 1000 local time(0200 GMT), will provide an overview of the struggling homebuilder's current situation, the proposed acquisition of the company by Sunac China, and its restructuring plan.
Kaisa has been mired in crisis since late last year after the local government in its home base of Shenzhen blocked sales at some of its projects in the city and the subsequent departure of a string of senior executives.
Its restructuring is being closely watched by offshore investors in Chinese corporate debt as it will be the first property developer to go through the process, providing a guide as to how foreign creditors might be treated in similar future situations.
Analysts said they expect the company might extend the period of time they have to repay their offshore bonds, an option that would be preferable to bondholders having to take a large haircut - a reduction in the amount of money they will ultimately get back.
Ahead of the call, bonds due 2017 on which a $16 million coupon is due on March 18, fell about 2 points to a bid of 58 cents on the dollar.
Last month Kaisa shocked markets when it said its borrowings as at end-2014 stood at 65 billion yuan ($10.4 billion), a figure that was more than double its last reported level in June last year.
The meeting on Monday is for holders of bonds due in 2016, 2017, 2018, 2019, 2020, and convertible bonds.
The aggregate amounts outstanding against these bonds are about $2.5 billion.
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