So­lar panel maker may de­fault on bond

China Daily (Canada) - - NEWSCAPSULE -

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.

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