It’s a question with which China’s regulators are becoming increasingly familiar. How does a company that reports a comfortable cash balance one moment not have the financial resources to meet the coupon or principal payments on its debts the next
This week’s teaser comes from the Tunghsu Group. On November 18, the group’s chief operating subsidiary, Dongxu Optoelectronic Technology, missed a coupon payment on a Rmb800 million $113.8 million MTN issue and failed to repay a Rmb1.87 billion bond after investors triggered the latter’s put option.
Yet the group’s recent financials recorded an apparently healthy liquidity position. ...
¬ Haymarket Media Limited. All rights reserved.
