Trading in shares of embattled Chinese developer Kaisa Group Holdings (1638.HK) was suspended on Wednesday, according to the Hong Kong stock exchange. The suspension comes after a source with direct knowledge of the matter said Kaisa was unlikely to meet its $400 million offshore debt deadline on Tuesday. read more Non-payment by Kaisa would push the 6.5% bond of Kaisa, China"s largest holder of offshore debt among developers after Evergrande, into technical default, triggering cross defaults on its offshore bonds totalling nearly $12 billion. To avoid default, bondholders owning over 50% of notes due on Dec. 7 and Kaisa notes worth a total of $5 billion sent the company draft terms of forbearance late on Monday, a separate source with direct knowledge of the matter said. Even in the case of a technical default, Kaisa and offshore bondholders could discuss forbearance terms, two sources with knowledge of the matter said. Kaisa, whose shares rose 1.1% on Tuesday, said it was open to discussion on forbearance, without elaborating. Larger rival China Evergrande (3333.HK) also did not make payments on some U.S. dollar bonds at the end of a month-long grace period, sources familiar with the situation told Reuters on Tuesday, setting the stage for a massive default by the world"s most indebted property developer. Reporting By Anne Marie Roantree and Donny Kwok; Editing by Kim Coghill Our Standards: The Thomson Reuters Trust Principles.