China Steelmaker Defaults on Bonds as Coal Miner Flags Risks
- Dongbei Special Steel missed 1.01 billion yuan bond payment
- Company's chairman was found dead by hanging last month
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A Chinese steelmaker whose chairman was found dead by hanging last month defaulted on bonds a second time in two weeks. A coal miner also flagged risks of nonpayment.
Dongbei Special Steel Group Co., based in the northeastern city of Dalian, said it missed payment on 1.01 billion yuan ($156 million) of principal and interest on notes due Tuesday, according to a statement posted on Chinamoney’s website. It sold the 90-day commercial paper with a face value of 1 billion yuan and a 6 percent coupon in January. The company failed to make a 852 million yuan bond payment on March 28, days after disclosing that its chairman, Yang Hua, was found dead by hanging at his home.