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Steelmaker Becomes Latest Chinese Company to Miss Bond Payment

  • Dongbei Special fails to pay $131 million, warns of other bill
  • Announcement comes four days after chairman reported dead

A state-owned Chinese steelmaker failed to make a 852 million yuan ($131 million) bond payment and expressed uncertainty about meeting a larger bill next week as the slowing economy weighs on debt-laden producers.

Dongbei Special Steel Group Co., based in the northeastern city of Dalian, said it failed to repay the sum of interest and principal due Monday, according to a statement posted on the Chinamoney website. The company said in a separate statement that it also might not be able to repay 1 billion yuan due April 3 on a 90-day bill because of tight liquidity. The company sold 800 million yuan in one-year bonds last year with a coupon of 6.5 percent, according to data compiled by Bloomberg.