Kaisa's talks with Shenzhen govt to unblock sales at deadlock-company source

Written By Unknown on Selasa, 27 Januari 2015 | 16.47

HONG KONG Mon Jan 26, 2015 11:30pm EST

HONG KONG Jan 27 (Reuters) - Troubled Chinese property developer Kaisa Group failed to remove a local government block on sales at its Shenzhen projects after a meeting with local officials on Monday ended without progress, a company source familiar with the talks said.

Kaisa's top executives held a high-level meeting with senior Shenzhen government officials on Monday afternoon in the Longgang district in northern Shenzhen, where two of Kaisa's new projects are blocked, according to the source.

"There was no progress at all in the meeting," the Kaisa executive said. "It's a Central Government order to keep the blockage  so even the Shenzhen government has no means to resolve this on its own."

The source said he wasn't at the meeting in person but was briefed on the discussions by those who were.

A Kaisa spokeswoman said she wasn't aware of the talks.

Kaisa is struggling after a string of senior executives left unexpectedly and authorities blocked sales at some of its projects in Shenzhen late last year.

The company failed earlier this month to make a $26 million interest payment on its bonds due to mature in 2020. (Reporting by James Pomfret; Editing by Rachel Armstrong)


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