Shanghai Industrial Financial Leasing Co. Ltd., a state-backed leasing firm and a major funding source for local government financing vehicles, has missed the interest and principal payments on a 400-million-yuan ($55.9 million) private placement bond, highlighting the company’s deepening debt woes.
On Aug. 1 the company warned it might be unable to repay a bond maturing on Aug. 3 after negotiations to secure bondholders’ support for an extension failed. With a coupon rate of 7.00%, the total principal and interest due is 428 million yuan. Since Aug. 3 falls on a weekend, the actual payment date is Aug. 5.
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