Solar panel maker may default on bond
Shanghai Chaori Solar Energy Science & Technology Co may default on a bond, raising concerns about conditions in China’s onshore bond market, although it also implies government confidence about letting companies fail, analysts said.
The panel producer said in a statement that it can’t make the full $14.7 million in interest payments due on Friday. Chaori’s failure to pay interest will mark the first default of an onshore bond.
Liu Tielong, director and vicepresident of Chaori, told China Daily in a phone interview that the company is “making a full effort to obtain capital” to cover the interest payment as soon as possible. Liu said Chaori is in talks with several strategic investors about a restructuring.