Guangxi Nonferrous Metals Group Co. said it may fail to repay a debt due this week, underscoring the risk that it will become China’s second state-owned firm to default.
The company, based in Nanning in Guangxi province, may not be able to repay 1.3 billion yuan ($210 million) of principal and 62.92 million yuan of interest on its 4.84 percent notes maturing June 13, it said in a statement on Chinamoney.com.cn, a website of the China Foreign Exchange Trade System.
Baoding Tianwei Group Co. became the nation’s first state-owned enterprise to default on domestic debt in April.
Guangxi Nonferrous Metals is owned by the State-owned Assets Supervision & Administration Commission of Guangxi province. The company is trying to raise money through various channels, it said in the statement. The firm reported a loss of 1.63 billion yuan in 2014, citing overcapacity and falling product prices, according to the statement.
— With assistance by Shidong Zhang