Core Viewpoint - Kaisa Group announced an innovative debt management plan to replace cash interest payments with shares, aiming to enhance liquidity and optimize capital structure [1][3]. Group 1: Debt Management Strategy - Kaisa Group is seeking consent from noteholders to issue shares instead of cash for interest payments, totaling $119 million (approximately HKD 933 million) [1]. - The interest payment shares will be issued at a price of HKD 0.5 per share, representing a premium of about 313.2% over the last closing price of HKD 0.121 [1]. - The proposed share issuance could increase Kaisa Group's total share capital by approximately 19.06% [1]. Group 2: Financial Stability and Restructuring - The initiative is part of Kaisa Group's efforts to manage debt proactively and restructure its capital, aiming for sustainable value creation post-debt restructuring [3][4]. - The company completed an offshore debt restructuring in September, reducing its debt by approximately $8.6 billion and extending the average debt maturity by five years, with no rigid repayment pressure until the end of 2027 [4]. - Kaisa Group is also focused on generating sufficient cash flow to meet financial obligations and is exploring alternative financing options [3]. Group 3: Market Position and Future Prospects - Kaisa Group's recent projects have achieved significant milestones, including collaborations with state-owned enterprises to mitigate development risks [4]. - The company is part of a broader trend where 21 distressed real estate firms have completed debt restructuring, alleviating short-term repayment pressures totaling around RMB 1.2 trillion [4].