17 February 2020

Chaori Solar Energy not counting on a bailout, WSJ says

Shanghai Chaori Solar Energy Science & Technology Co. Ltd. (002506.CN), a maker of solar cells and panels which is facing China‘s first bond default, said it will not receive a local government bailout for now while reiterating it can repay only a tiny fraction of the interest on debt issued two years ago, the Wall Street Journal reported Thursday. The Shanghai government “hasn’t promised anything and is treating our debt crisis according to market rules”, Liu Tielong, the company’s board secretary, was quoted as saying. The company plans to pay 4 million yuan (US$654,000) of the 89.8 million yuan (US$14.6 million) in interest owed on its 1 billion yuan bond Friday, the report said. The debt’s underwriter will announce a bondholders’ meeting to discuss the potential dispute before March 11, Liu was quoted as saying.

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