Economics
China Energy Firm CEFC Defaults After Rosneft Deal Fails
- CEFC Energy unit says unable to repay 2 billion yuan bond
- Private firms’ defaults won’t shake government resolve: S&P
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As corporate defaults pile up in China’s onshore bond market, a unit of a once-promising energy conglomerate with $4.8 billion of debt and a checkered past said it won’t be able to meet its payment obligation Monday.
CEFC Shanghai International Group Ltd., a unit of the privately-held CEFC China Energy Co., failed to repay 2 billion yuan ($313 million) of bonds but said it will seek to pay back the notes in six months, according to a statement on the Shanghai Clearing House website. The unit said a week ago it may not be able to repay the notes because its chairman’s failure to “fulfill normal responsibilities” had a huge impact on the company’s operations.