China Energy Misses Payment on Bond, Triggering Cross Default
China Energy Reserve & Chemicals Group Co. said it hasn’t paid a $350 million bond that matured earlier this month, in the latest example of China’s deleveraging campaign choking off financing for some companies. The company plans to suspend this year’s interest payments on bonds due in 2021 and 2022 while it considers asset sales and seeks to restructure the notes, China Energy said in a filing that appeared on the Hong Kong exchange on May 27. China Energy rose to prominence earlier this year when it pulled out of a $5.2 billion deal to buy a Hong Kong skyscraper from Li Ka-shing’s company, after making an unsuccessful bid for Australian oil and gas explorer AWE Ltd.