Offshore bondholders in Chinese property developer Kaisa have rejected a plan to avoid a messy default.
Kaisa, which has launched a fire sale of its assets, wanted to extend the maturity of its debt. Around $3bn (£2.3bn) of dollar-dominated bonds will be due in the next 12 months.
On Tuesday, Kaisa received a letter from a group claiming to represent more than 50% of the investors in a $400m bond that will mature on 7 December, including Pimco and Ashmore.
The letter stated that a proposal made by Kaisa on 25 November, to swap the bonds for new notes maturing in June 2023, was “unacceptable”. The offer required the approval of 95% of bondholders.
