China, Baoding: Chinese power transformer manufacturer Baoding Tianwei Group Co. said it is uncertain it can pay bond interest due next week after China’s onshore debt market this month had its second default ever.
The company may not be able to make the $13.8 million payment on 21 April because of reported huge losses last year in its alternative energy business, listed affiliate Baoding Tianwei Baobian Electric Co., the company revealed in a statement to the Shanghai Stock Exchange, reports Bloomberg.
The yield on Baoding Tianwei’s BB rated notes due in April 2016 has risen 3.69 percentage points this year to 18.98 per cent, according to ChinaBond data.
Baoding Tianwei Group said it is trying to raise money for the interest repayment through many channels, according to Baoding Tianwei Baobian Electric’s statement. Baoding Tianwei Group holds 22.96 per cent of Baoding Tianwei Baobian Electric.