chaori bond

Chaori puts bondholders in a tricky position

The restructuring plan by Chaori Solar is not good enough for bond investors to solve the first domestic corporate bond default, said analysts and lawyers.

Shanghai Chaori Solar Energy Science and Technology’s restructuring plan has left few options for bond investors, who may still face a big loss in the company’s bond default.    

Shenzhen-listed Chaori Solar, which in March became the first Chinese company to default on its onshore corporate bonds, unveiled a solution on Tuesday for its bond’s principle and interest payments.

In March, Chaori failed to pay all of the Rmb89.8 million interest on the Rmb1 billion five-year bond it issued in 2011. It also failed to hold a bond investors meeting to decide whether to restructure the company andor sell some of the collateral backing...

¬ Haymarket Media Limited. All rights reserved.

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