Chinese Developer Kaisa On Verge Of $5 BILLION Default; Who’s Next?

Chinese Developer Kaisa On Verge Of $5Bn Default; Who’s Next? (ZeroHedge. Jan 8, 2015):

“You never know where the skeletons in the closet are or what company will be next,” warns one Chinese credit analyst and as the CNY30 billion indebted Chinese developer Kaisa Group (that we initially discussed here) admits it can’t say if it plans to meet a bond deadline today as a local news website said lenders took steps to preserve assets. The builder of residential communities and shopping centers must pay about $26 million in interest on its 10.25 percent 2020 debentures today (which appears unlikely) and its bonds have crashed to below 30c. The big question, as Bloomberg notes, is who’s next?

1 thought on “Chinese Developer Kaisa On Verge Of $5 BILLION Default; Who’s Next?”

  1. Kaisa has been on the path to bankruptcy for months. These government contractors who are in trouble for corruption are the builders of the ghost cities and big, empty buildings one sees all over China. Most of these contractors, much like their American counterparts, are greedy guts eating from the public trough. The government contracts are where all the money goes……..none goes into the real economy.
    Sound familiar? Of all the nations in the east, China is the most vulnerable because of their lies about everything. They claim a debt level of 7%. They claim to export far more than they do………they lie about everything. Russia, and the other BRICS members need to keep an eye on them, they have adopted too many US policies.


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