Shandong Helon Co. said it will have difficulty paying overdue bank loans, just days after the Chinese synthetic fiber maker paid off its 400 million yuan ($63.4 million) bond.
Its net loss reached 1 billion yuan last year, the company, based in Weifang in China’s eastern province of Shandong, said in a stock exchange statement today. The manufacturer will also face difficulty extending current bank loans, it said.
The company didn’t give a source of the funds for its April 15 payment on the bond. Shandong Helon reported a first-quarter loss of 149 million yuan today.
The manufacturer had negative net assets of 804 million yuan at the end of 2011, it said.
The company also said it has guaranteed 1.43 billion yuan of other borrowers’ debt.
Overdue loans at the company rose by 40 million yuan between March 22 and April 10, it said in an April 11 statement, accounting for 582 percent of its net assets.