The chairman of a Chinese auto parts supplier that defaulted on 1.55 billion yuan ($230 million) of bonds stepped down Tuesday, sparking fresh fears among creditors that they won’t be able to get their money back.

Zhong Yu, chairman of Shenzhen-listed Kangde Xin Composite Material Group Co. Ltd., resigned for personal reasons, the company said in a statement. Zhong holds the controlling interest in Kangde Xin.

Kangde Xin in January failed to repay principal and interest on 1.55 billion yuan of debt, although the company’s financial report showed it held more than 15 billion yuan in cash and bank deposits just four months ago.

Zhong in late January told creditors that he is willing to provide a personal guarantee for the company’s debts and promised repayments by the end of March.

Kangde Xin, based in the city of Zhangjiagang in the eastern province of Jiangsu, is the latest defaulter in China’s wave of bond defaults. The company has supplied automakers such as BMW and Mercedes-Benz with carbon fiber composite materials, according to its annual reports.

Related: Chinese Bond Defaulter’s Chairman Offers Personal Guarantee

A previous version of this story incorrectly identified Kangde Xin's former chairman. His name is Zhong Yu.

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