China Shanshui Can't Pay Bond Interest Due to Lack of Seal
- Company already remitted interest payment to bank account
- Payment of 74.4 million yuan in interest was due on Thursday
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China Shanshui Cement Group Ltd. said interest on its 2017 notes can’t be distributed to bondholders because of the lack of a company seal, highlighting the challenges facing investors trying to get paid after a series of domestic bond defaults since November.
While the company has already remitted 74.4 million yuan ($11.4 million) of interest due Thursday on the 6.2 percent 1.2 billion yuan note maturing in 2017 to the bank account designated by China’s interbank clearing house, the money couldn’t be distributed because the company doesn’t have the seal of its main operating subsidiary Shandong Shanshui Cement Group Ltd., according to a Thursday filing by Hong Kong-listed company. The seal has already been made invalid, it said.