China Tells Internet Firm Ex-Boss Come Home to Fix Debt
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China told an Internet company to urge its former chief, under investigation for alleged securities rules violations, back to the country as it seeks to avert a second corporate default in the onshore bond market.
China Securities Regulatory Commission said Cloud Live Technology Group Co. should tell its biggest shareholder, which filings show is former chairman Meng Kai, “to fulfill his promise and solve the repayment problem” on notes it must repurchase next month, according to a March 18 company statement. Cloud Live said March 4 investors had applied to sell back 398.71 million yuan ($64 million) of bonds on April 5 and that there were “big uncertainties” over the repayments.