Default Looms for Chinese Solar Company
- Tianwei Yingli's 1 billion yuan of notes were issued in 2010
- China's credit-default swaps rose to two-year high last month
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Defaults in China are expanding with a solar component maker the latest company to miss a bond payment, as the nation’s debt market flashes danger signs like equities did before their tumble began four months ago.
Baoding Tianwei Yingli New Energy Resources Co., whose majority holder was until last year the world’s biggest solar panel company by shipments, failed to make a complete payment on a note due Tuesday, it said in a statement posted to the China Foreign Exchange Trade System website. The firm paid only 643 million yuan ($101.4 million) of 1 billion yuan of principal due, while making full payment on 57 million yuan of interest, it said.