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Energy Firm Struggles to Sell Stake in Subsidiary After Default

Sunshine Kaidi has found it hard to sell its stake in its subsidiary Kaidi Eco, partially because it has taken out loans using a large amount of the company's shares as collateral. Photo: IC
Sunshine Kaidi has found it hard to sell its stake in its subsidiary Kaidi Eco, partially because it has taken out loans using a large amount of the company's shares as collateral. Photo: IC

The parent of a company that defaulted on a roughly 700 million yuan ($109.3 million) bond is having trouble offloading its stake in a Shenzhen-listed subsidiary.

Sunshine Kaidi New Energy Co. Ltd.’s struggles to find a buyer for its controlling stake of Kaidi Ecological and Environmental Technology Co. Ltd., one of the country’s biggest generators of biomass electricity, illustrate the problems that companies can encounter while seeking a white knight for a rescue buyout.

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