Hidili Says Not in Position to Pay Bonds as China Defaults Mount
- Company has defaulted on some of its 6 billion yuan of loans
- Coal trader Winsway missed bond payments earlier this year
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China faces another test in its credit markets this week after a coal firm signaled it may default on its dollar debt.
Hidili Industry International Development Ltd. is not in a position to repay $190.6 million of principal and interest due Nov. 4. on its 8.625 percent notes, it said in a statement Friday. The mining company based in the southwest province of Sichuan has defaulted on some of its 6 billion yuan ($947 million) of loans, it said. Hidili has hired UBS Group AG to advise on bond restructuring, according to the filing.