(Reuters] Kaisa Group claimed Monday it hadn’t received notice from bondholders to speed up repayments, as the Chinese property developer is still owing a $400million offshore bond.

According to the firm, it did not also pay $105,000,000 in coupon for 2023, 2025 and 2026 notes, which were due in 2026. The grace period for these two has already expired.

Fitch Ratings downgraded the rating to “restricted default” after nonpayment of $400 million due Dec. 7.

Kaisa, China Evergrande Group’s second largest bond issuer in dollars after China Evergrande Group with more than $300 Billion of liabilities, is Kaisa.

Fears of knock-on effects and the fates of Kaisa, Evergrande, and other Chinese property firms indebted have gripped financial markets over recent months. Beijing has repeatedly sought to reassure investors.

Kaisa shares plunged 8.7% at HK$0.84 during the first session of resumed trading. This is a record-breaking low after a Dec. 8 suspension.

Kaisa indicated that the company was in negotiations with bondholders regarding a debt restructuring agreement. It had also hired Houlihan Lokey, (NYSE:), as its financial advisor and Sidley Austin to serve as legal adviser.

Kaisa met with Lazard (NYSE) to discuss a non disclosure agreement (NDA). This was a first step in further negotiations on financing and forbearance.

Sources said that the group was planning to spend up to $1Billion to purchase bad loans from Chinese developers’ onshore creditors.

According to the Monday filing, after the November and October significant sales declines, the developer said that it anticipates potential purchasers of property confidence remaining subdued for December.