Jakarta, CNBC Indonesia – China’s property giant crisis continues. After China Evergrande, now the company Kaisa Group Holdings is also in danger of not being able to pay its debts and going bankrupt.
The company listed on the Hong Kong stock exchange is said to be unlikely to meet the debt deadline target of US$ 400 million, equivalent to Rp 200.78 billion. Kaisa also suspended stock trading, Wednesday (12/8/2021).
“At the request of Kaisa Group Holdings Ltd, trading in the company’s shares was suspended at 9:00 am on Wednesday, December 8, 2021 pending the release by the company of an announcement containing inside information,” said a disclosure on the local exchange, quoted by AFP.
Kaisa is the 27th largest real estate in Bamboo Curtain. But the company is reported to be one of the country’s most heavily indebted.
Kaisa last month announced plans to delay the timing of payments to some of its bondholders, by offering a note swap deal.
This is to avoid default and is aimed at bondholders who have more than 50% of notes due on December 7 and Kaisa notes worth a total of US$5 billion.
But last Friday, the offer failed to get the 95% approval from bondholders needed for the plan to go ahead.
Previously, the same thing had happened to the Chinese property giant Evergrande. This triggers the current hinge investor confidence crisis.
Some blamed the Chinese government for triggering the crisis in the property sector when it launched efforts to curb excessive debt among real estate firms, such as Kaisa and especially Evergrande last year.
Companies that have huge debt to grow suddenly accept the fact that the “tap” of money is turned off and begins to struggle to complete projects, pay contractors and meet payments.
(boss / boss)
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