Struggling Chinese property developer Kaisa defaults on dollar bonds amid slowdown

Associated Press

A struggling Chinese property developer says it has defaulted on dollar-denominated debt, exposing international creditors to potential losses as it grapples with a slumping property market amid a slowdown in the world's second biggest economy.

Kaisa Group Holdings Ltd. said in a filing late Monday that it failed to pay $51.6 million in interest payments on its bonds due in 2017 and 2018.

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The company said in its statement to the Hong Kong stock exchange that it failed to make the payments within a 30-day grace period.

It's the latest development for the troubled company, whose fortunes have tracked the rise and fall of China's housing market.

In recent months it also faced a clampdown on its operations by authorities in the southern city of Shenzhen, where it is based.