Kaisa Closer to Default After Bondholders Reject Debt Swap

(Bloomberg) — Kaisa Group Holdings Ltd. failed to win bondholder approval for a debt swap, putting the Chinese developer on course for a default unless it can reach a last-minute agreement with creditors to delay payment.

The firm had sought to exchange its $400 million of dollar notes maturing Tuesday for new ones due 18 months later. The offer failed to meet the required 95% approval rate, according to a statement from the company. Kaisa shares tumbled almost 10% to a record low, while its dollar notes were little changed.