Xuzhou Zhongsen Said to Avert Default on Guarantor Help
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A Chinese building materials producer will avert what would have been the second default in the nation’s onshore bond market as its guarantor said it would step in to help, two people familiar with the matter said.
Closely held Xuzhou Zhongsen Tonghao New Board Co., based in the eastern province of Jiangsu, missed a 10 percent coupon payment due March 28 on securities sold last year, the two people said, asking not to be identified because the details are private. Sino-Capital Guaranty Trust, the guarantor for the 180 million yuan ($29 million) of notes, will fulfill its responsibilities, the two people said.