Chinese developer Kaisa faces default as debt swap plan rejected

Embattled Chinese developer Kaisa Group is facing a default after saying Friday it had failed in a bid for a debt swap that would buy it crucial time, warning there was "no guarantee" it would be able to meet its payment obligations.

The company is one of several real estate firms that have plunged into crisis over the past year after China embarked on a regulatory drive to curb speculation and leverage, cutting off a crucial avenue for accessing cash.

The highest profile of them is China Evergrande, which is drowning in a sea of debt worth $300 billion, and is struggling to meet its own obligations.

The firm's woes have fanned concerns about the whole property sector, which makes up a substantial part of the world's number two economy.

Kaisa last month announced a plan to delay the repayment timeline for some of its bonds, offering an exchange for at least $380 million of notes, which would give it some room to find money further down the line.

But the offer failed to win the 95 percent approval from bondholders needed for the plan to go ahead.

In a statement on Friday, the firm said it will explore solutions "including but not limited to renewal and extension of borrowings and disposing of assets".