The bond default by Shanghai Chaori Solar Energy Science and Technology should provide a template for resolving similar issues in addition to breaking the implicit guarantee inherent in China’s financial market.
A bondholder meeting will be held on March 26 to decide the next steps namely, whether to compel the bond underwriter - China Securities - to pursue a civil lawsuit against the company, sell some of the collateral backing the defaulted securities, or participate in restructure, negotiate with or bankrupt the company.
However, according to sources and legal experts, entering a bankruptcy or restructuring process would be the last option for both the company...
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