Energy | China coal miner fails to make bond payment amid slowing economy

A Chinese coal miner failed to make a bond payment yesterday, highlighting rising credit risks in the nation as economic growth slows.
The Shanghai Clearing House hadn’t received funds from Chinacoal Group Shanxi Huayu Energy Co. to pay holders of its 600 million yuan (USD92.5 million) 6.3 percent notes, according to a statement on the clearing house’s website yesterday. The coal miner, which is based in the northern province of Shanxi, sold the securities last year.
Chinese firms are struggling with surging debt burdens amid the country’s worst economic slowdown in a quarter-century. At least 13 companies have defaulted on bonds in the past two years even as the central bank loosened monetary policy. Dongbei Special Steel Group Co., whose chairman was found dead by hanging last month, defaulted on securities a second time in two weeks on Tuesday.
Two calls to Shanxi Huayu Energy went unanswered. The firm said earlier this week that it may miss the 637.7 million yuan payment in principal and interest on the notes due yesterday. Bloomberg