Chinese laminating film producer Kangde Xin Composite Material Group Co. fails to repay a local bond due Tuesday, which could trigger cross-default on its dollar note.
The firm cited liquidity crunch for not being able to repay the principal and the interest on the 1 billion yuan bond ($148 million), according to a public filing on Tuesday. The default follows the Jiangsu-based firm’s warning on Monday that it sees uncertainty in repayment of its 1 billion note as well as another 500 million bond due Jan. 21.
