World Economy

Default on Bond Principal

Default on Bond PrincipalDefault on Bond Principal

A Chinese technology firm said it cannot meet a 241 million yuan ($39m) debt repayment, making it the first company to default on corporate bond principal in modern China, Industry Week reported. Cloud Live Tech Group said in a statement to the Shenzhen stock exchange it was unable to pay principal and interest on a five-year, 480 million yuan bond issue sold in 2012. Investors had an option to be repaid their principal after three years. Solar company Chaori last year became China’s first-ever to default on a domestic corporate bond after it was unable to make full interest payments of 89.8 million yuan.