Evergrande and Kaisa have not repaid debts to foreign creditors

Real estate companies Evergrande and Kaisa have not repaid debts worth $ 1.6 billion (€ 1.42 billion) to foreign creditors. Fitch Ratings announced this on Thursday. This points to the "spread of the disease" in the indebted real estate sector in the Asian country. Real estate giant Evergrande is the largest company struggling with the debt crisis and for several months trying to raise capital to pay $ 300 billion in liabilities. Fitch confirmed on Thursday that the company had not repaid more than $ 1.2 billion in bonds for the first time, so it downgraded its rating to RD (Restricted Default, RD), which means partial insolvency. Fitch also reported that the Chinese real estate company Kaisa Group Holdings also failed to repay $ 400 million in bonds and also downgraded its foreign currency rating to RD C. "Non-payment is in line with the Restricted Default rating, which means partial insolvency," Fitch said in a statement. Evergrande, China's second-largest development company, which has been shaken by the country's liquidity crisis, has failed to pay interest on dollar bonds whose grace period expired on December 6. This development marks the beginning of the end of the vast real estate empire that Chuej Kcha Jen founded 25 years ago. So a long battle broke out over who would get paid for what was left. Evergrande's problems are also the biggest challenge to date for the Chinese government and its efforts to prevent a debt crisis in the real estate sector. Evergrande admitted more than $ 300 billion in June. In a brief report on December 3, she said she planned to "actively cooperate" with foreign creditors on a restructuring plan. According to unnamed sources, it plans to include all its offshore public bonds and private debt obligations in the restructuring.