“In our view, it is likely that a payment default has occurred,” S&P said in a statement yesterday. Chaoda failed to repay the principal on its $200 million convertible bond by the Feb. 7 due date, according to S&P, which cut the company’s credit rating to “CC’ from ‘‘CCC.’’
Winston Yau, an external spokesman for Chaoda at Christensen Investor Relations Inc. in Hong Kong, said yesterday that he was trying to obtain information about the company’s debt.
S&P also said yesterday that it is withdrawing its ratings on Chaoda because it lacks access to the Chinese company’s management. Chaoda lost 82 percent of its market value last year and delayed its annual earnings release on Sept. 30 to audit its accounts after a report from Anonymous Analytics questioned its finances.
Bondholders can request Chaoda buy back the bond if the company’s shares are suspended for more than 60 days, S&P said last month. Chaoda may be required to make repayments in early February, the credit rating company said at the time.
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