Crisis at China's JPMorgan Wannabe Deepens on Bond Defaults
- CMIG cross defaults triggered on $800 million of dollar bonds
- Conglomerate earlier spooked investors with late debt payment
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A debt crisis at one of China’s most well-known private conglomerates entered a new stage Thursday, with the company saying cross-default clauses had been triggered on dollar bonds worth $800 million.
China Minsheng Investment Group Corp. has appointed Kirkland & Ellis as legal adviser, according to a Hong Kong stock exchange filing, which also noted that banks have set up a creditor’s committee to try to stabilize the company. The cross default comes after CMIG’s problems spread to its affiliate Yida China Holdings Ltd., making some of the developer’s debt immediately payable, and causing a chain reaction back to the parent company’s own securities.