Chinese commodities trader Cedar Holdings Group, is struggling to pay RMB 20 billion ($3.1 billion) in wealth management products due to around 8,000 investors, reports Bloomberg. In April last year, the company started delaying redemptions on matured products, only paying interest, and as of last month also stopped making interest payments.
China has been rocked by a string of defaults amid a liquidity squeeze in the property market, with firms including China Evergrande Group and Kaisa Group Holdings angering investors by missing payments. Cedar ranked 359th on the Fortune Global 500 list of companies last year, generating revenue of $33.8 billion.
Founded in 1997, Guangzhou-based Cedar is a private conglomerate with interests in everything from raw material trading to property to specialty chemicals. The company agreed to buy British steel trader Stemcor Holdings Group in 2020 and expressed interest in buying control of trouble trader Noble Group in 2018.