07-03-2014, 07:17 PM
(This post was last modified: 07-03-2014, 07:22 PM by AlphaQuant.)
Finally happened - prob the first of quite a few small, non-core firms as PBOC sends a warning signal over over-easy credit that there's no definite backstop.
"Shanghai Chaori Solar Energy Science & Technology Co. (002506) failed to pay full interest due today on onshore bonds, the first default in China at a time when a growing number of companies are struggling with debt.
The maker of energy cells to convert sunlight into power is trying to sell some overseas plants to raise money to repay the debt, Vice President Liu Tielong said in an interview today at the company’s Shanghai headquarters. The company said on March 4 it will only be able to pay 4 million yuan ($653,990) of an 89.8 million yuan coupon due today on the notes."
Also interesting extract from Businessweek: Total debt of publicly traded non-financial companies in China and Hong Kong has surged to $1.98 trillion from $607 billion at the end of 2007, according to data compiled by Bloomberg. Some 63 have a debt-to-equity ratio exceeding 400 percent, compared with the average of 73 percent. Renewable energy, materials, household appliances and software companies dominate the rankings.
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http://www.bloomberg.com/news/2014-03-07...-says.html
"Shanghai Chaori Solar Energy Science & Technology Co. (002506) failed to pay full interest due today on onshore bonds, the first default in China at a time when a growing number of companies are struggling with debt.
The maker of energy cells to convert sunlight into power is trying to sell some overseas plants to raise money to repay the debt, Vice President Liu Tielong said in an interview today at the company’s Shanghai headquarters. The company said on March 4 it will only be able to pay 4 million yuan ($653,990) of an 89.8 million yuan coupon due today on the notes."
Also interesting extract from Businessweek: Total debt of publicly traded non-financial companies in China and Hong Kong has surged to $1.98 trillion from $607 billion at the end of 2007, according to data compiled by Bloomberg. Some 63 have a debt-to-equity ratio exceeding 400 percent, compared with the average of 73 percent. Renewable energy, materials, household appliances and software companies dominate the rankings.
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http://www.bloomberg.com/news/2014-03-07...-says.html