China coal exporter becomes third firm to default on offshore bond this year

Coal exporter Winsway Enterprises (1733.HKG) has become the third Chinese company to default on an offshore bond this year, Reuters reported, citing a stock exchange announcement from the company. The company said it had missed an interest payment of US$13.15 million on its 8.5% bonds due in 2016, the grace period for which expired last week. “Progressively, companies with credit difficulties will be allowed to default in China and investors should be prepared to lose some of their principal,” said Geoffroy Wallier, managing partner at Orfi Capital.