June 21, 2018 / 11:28 AM / 10 months ago

UPDATE 1-CEFC Shanghai International defaults on bond interest payments

(Recasts with company statement)

SHANGHAI, June 21 (Reuters) - CEFC Shanghai International Group Ltd, a unit of troubled China CEFC Energy Co Ltd, has defaulted on interest payments due on June 21, the company said on Thursday.

CEFC Shanghai said it was unable to make the payments totalling 197 million yuan ($30.39 million) on a 2.5-billion-yuan perpetual bond, in a statement posted on the website of the Shanghai Clearing House.

“(CEFC Shanghai) is unable to make interest payments in time, which constitutes material default,” the company said.

It said media reports on the chairman of its parent, CEFC China Energy, had negatively affected its business operations.

The statement followed a notice from the clearing house that it had not received the payments due on June 21.

Thursday’s default comes after CEFC Shanghai defaulted on bond payments worth 2.1 billion yuan on May 21.

CEFC Shanghai said on June 15 it was uncertain it would be able to make principal and interest payments worth 2.1 billion yuan due on June 25.

CEFC China Energy Chairman Ye Jianming was reported this year to be under investigation for suspected economic crimes. ($1=6.4817 Chinese yuan) (Reporting by Andrew Galbraith; Editing by Clarence Fernandez)

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