China Iron Ore Miner Defaults on Bond, Hurt by Economy Slump
- Zibo Hongda failed to make full bond payment due Tuesday
- Some banks withdrawing loans to Zibo Hongda, Dagong says
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A Chinese mining company defaulted on its bonds, the latest firm to have trouble with financing as an economic slump hurts business.
Zibo Hongda Mining Co., which is based in the eastern province of Shandong, said it didn’t raise enough funds to make its full debt payment due March 8, according to a statement posted to the Shanghai Clearing House website. The iron ore miner issued 400 million yuan ($61 million) of notes in 2015 with a coupon rate of 8 percent and had to repay 431.91 million yuan in principal and interest Tuesday.