Developer Sunac China might drop plans to buy a stake in troubled Kaisa Group as the firm it is buying is in much worse shape than expected. “If creditors do not cooperate, the deal will not go through and we will surely give up,” Chairman Sun Hongbin said. Kaisa had total debts of over USD10 billion as of the end of last year. Sun said Sunac had spent almost HKD10 billion on Kaisa, which could otherwise have not survived through February. If Kaisa fails to pay the estimated USD52 million interest that was due March 18 and March 19 on its 2017 and 2018 notes after a 30-day grace period, it would become the first Chinese real estate company to default on its U.S. currency debt. Sunac China Holdings reported a 1.4% rise in net profit to CNY3.22 billion for last year, after the Chinese developer met its full-year contract sales target of CNY65.84 billion. Core profit was CNY3.73 billion, against CNY3.96 billion expected in a Bloomberg analyst poll. Gross profit margin fell to 17.3% from 23.3% in 2013.