by winston » Fri Jan 23, 2015 5:11 am
Kaisa bonds rallying
Bonds of struggling property company Kaisa Group (1638) rallied sharply yesterday on hopes it may be rescued through a capital injection from rival firms, after it had missed payment deadlines on a bank loan and bond coupon.
Bloomberg reported yesterday that Shenzhen officials were speaking to various developers about investing in Kaisa, whose offshore US dollar bonds were trading in the 44/48 cents (HK$3.43/ HK$3.74) in the dollar range in thin trade in the late afternoon, up from the morning's 36/39. Its shares are halted.
Kaisa missed an interest payment on the 2020 bonds this month, and now has a 30-day grace period to pay up or else become the first mainland developer to default on its foreign debt.
The firm is struggling after a string of senior executives left unexpectedly, and government officials blocked sales at some of its projects in Shenzhen.
Source: REUTERS
It's all about "how much you made when you were right" & "how little you lost when you were wrong"