By Ben Otto


Chinese property developer Kaisa Group Holdings said creditors have rejected a proposal to restructure its offshore debt of more than $12 billion.

An ad-hoc group of creditors who collectively hold or control more than a third of the offshore debt won't back a preliminary proposal by the company, Kaisa said in a stock-exchange disclosure late Tuesday.

The proposal "contained certain features which the [creditors group] has indicated it is not prepared to support," Kaisa said, without providing details.

The developer's plan had considered provisions for converting some of the debt to company shares, exchanging existing notes for new notes and using proceeds from asset disposals as a source of funding to repay new notes.

Shenzhen, China-based Kaisa said the parties will continue talks.

At the end of 2022, Kaisa had offshore interest-bearing debt of about $12.3 billion and onshore debt of about 50.6 billion yuan ($6.92 billion).


Write to Ben Otto at ben.otto@wsj.com


(END) Dow Jones Newswires

10-17-23 2128ET