Caixin
Oct 29, 2018 08:10 PM
FINANCE

Chinese Security-Systems Maker to Default On Bond Buyback

China Security’s new default added to the wave of corporate bond defaults amid policymakers’ ongoing deleveraging campaign. Photo: IC
China Security’s new default added to the wave of corporate bond defaults amid policymakers’ ongoing deleveraging campaign. Photo: IC

Security-systems maker China Security Co. Ltd. announced on Thursday that it will not buy back its bonds as promised next month, becoming the latest Chinese company to default on its securities.

China Security said it wasn’t able to raise enough money for it to buy back its 1.1 billion yuan ($158 million) in bonds if investors were to choose to sell them now, and so it will cancel the buyback that was scheduled to take place on Nov. 11, according a company filing (link in Chinese) to the Shanghai Stock Exchange.

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