Agence France-PresseMarch 7, 2014 05:27
China's first-ever default on a domestic corporate bond, expected Friday, has sparked legal action by investors owed interest payments from a solar company, their lawyer said.
Shanghai-based Chaori Solar Energy Science & Technology Co. said Tuesday it was unable to make full interest payments of 89.8 million yuan ($14.7 million) on a bond issued in 2012.
The company could not be reached for comment on Friday.
Lawyer Gan Guolong, who represents investors, said Chaori was already effectively in default and a formal announcement was not expected.