Anshuman Daaga

SINGAPORE (Reuters) – Some offshore bondholders of embattled Chinese developer Kaisa Group who did not receive coupon payments this month have tapped investment bank Moelis (NYSE:) & Co to advise them on the matter, a source with direct knowledge told Reuters on Tuesday.

Kaisa has more offshore debt than any Chinese developer, after China Evergrande Group. It has yet to pay coupons for over $59 Million due Nov. 11, 12 and 13, with 30-day grace periods.

A $400 million maturity on a bond in another currency has been issued to the Shenzhen developer. It is due Dec. 7.

Bloomberg reported earlier on Tuesday that an ad hoc group of offshore bondholders is also seeking advice from lawyers at Kirkland & Ellis, besides Moelis.

Kaisa refused to comment. There was no immediate comment from Moelis and Kirkland & Ellis to a Reuters query sent outside U.S. working hours.

Chinese developers are experiencing an unprecedented liquidity shortage due to restrictions on borrowings. In recent weeks there have been a number of credit downgrades, offshore defaults, and sell-offs of shares and bonds by some developers. Evergrande has been at the heart of the crisis.

Evergrande is the most indebted global developer. It has struggled to meet its debt repayment deadlines as it carries more than $300 billion of liabilities. Moelis and Kirkland & Ellis are advising a group of offshore bond holders of Evergrande.

Fitch downgraded Kaisa’s Long-Term Foreign Currency Issuer Default Rating from “CCCC-” to “C” on last week’s missed coupon payments.

Developer, who has missed payments on wealth management products offshore, had asked for assistance from creditors and stated that it would not pay interim dividends.

Kaisa is looking for funds to pay off its debts through asset dispositions. Reuters reports that Kaisa Prosperity Holdings’ Hong Kong property management unit Kaisa Prosperity Holdings was in search of buyers. According to one source, one of the properties has been recently sold.