World News

China’s Peking Founder unable to repay overdue bond amid restructuring: sources

BEIJING (Reuters) – China’s Peking University Founder Group [PEKIN.UL] was unable to repay an overdue onshore China bond due on Friday, two sources with direct knowledge of the matter said, as the company has entered debt restructuring.

The repayment date for the 2 billion yuan ($284.54 million) worth of short-term commercial paper, which was originally due on Dec. 1, had been extended to Feb. 21.

Creditors had agreed to extend the deadline after the company missed interest and principal payments in December.

Bank of Beijing <601169.SS>, one of the creditors of Founder Group, has asked a court to restructure the indebted state-owned conglomerate, according to a recent filing.

(Reporting by Zhang Xiaochong and Ryan Woo in Beijing, Noah Sin in Hong Kong; Additional reporting by Noah Sin in Hong Kong; Writing by Winni Zhou; Editing by Himani Sarkar)