Foreign creditors rejected troubled China developer Kaisa Group Holdings’ (1638.HKG) proposal to cut coupon rates by up to 66% and extend its debt by five years, South China Morning Post reported. The firm, which has struggled since the Shenzhen government restricted sales of its projects in December, has US$2.5 billion in offshore debt and US$7.6 billion in domestic debt. Analysts said the next step was to renegotiate the terms, though by pushing back too much debt holders may risk scaring off Sunac China Holdings (1918.HKG), which has said it will call off its takeover before a July deadline if a debt agreement was not in place soon.
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