Winsway Misses Second Interest Payment on Defaulted Dollar Bondsby
Winsway Enterprises Holdings Ltd. failed to pay interest on dollar-denominated bonds for a second time this year as it seeks to sell assets and find new investors.
The Chinese coking-coal importer didn’t honor a $13.15 million semi-annual coupon due Thursday on $309.3 million of 2016 notes, it said in a filing to the Hong Kong stock exchange. It defaulted on the securities in May after skipping the April coupon payment.
China’s economic slowdown has caused a slump in commodities, with the price for coking coal used in steel making falling 55 percent in the four years through 2014. Winsway is asking bondholders to take unspecified losses, according to its annual report, through a possible debt-to-equity swap or a maturity extension and interest rate reduction.
Winsway’s 8.5 percent 2016 bonds traded at 14.63 cents on the dollar Friday in Hong Kong, according to Bloomberg-compiled prices. The notes have fallen about 23 cents this year and touched a record low 13.5 cents on Sept. 9. The company originally sold $500 million of the securities in April 2011.
Winsway has entered a standstill agreement with some bondholders since it became the second Chinese issuer to default on dollar-denominated bonds after Kaisa Group Holdings Ltd. That expires on Oct. 15.