As default rates soar in China, a Zhengzhou-based pork producer has filed with the Shenzhen Stock Exchange to pay the interest due to its bond holders in kind.
By Shruti Advani, Editor-at-large, finews.asia
Chuying Agro-Pastoral Group is one of many medium-sized Chinese companies grappling with severe liquidity issues. As of September 30, the company had 1.3 billion yuan ($187 million) in cash against a short-term debt load of 8.4 billion yuan, according to data compiled by «Bloomberg».
With no imminent relief to its woes, the company has effected an agreement with its stakeholders in lieu of the interest due on a 500 million yuan bond that became due on November 5. According to the agreement, interest will be paid with the company’s ham.
Much has already been written about the credit crisis facing Chinese enterprises ranging from small- to medium-sized manufacturers right up to diversified listed companies. While the trade war with the U.S. continues to wreak havoc on the currency, there's concern that the malaise will spread from the corporate sector to individuals.
