Second Chinese shipbuilder defaults this year

Wuhan Guoyu Logistics Industry Group Co., based in Hubei, defaulted on a bond payment to the Shanghai Clearing House, according to a statement Monday. The firm issued the 400 million yuan ($60 million) of one-year bonds at 7% in 2015. Chinese companies are struggling with record debt payments in the second half as Premier Li Keqiang seeks to cut overcapacity with the economy growing at the slowest pace in a quarter century. At least 18 local yuan bonds have now defaulted this year, exceeding the seven for all of 2015. The shipbuilder said on Aug. 1 it may not be able to repay the notes because of a capital shortage. The company also has 200 million yuan of securities due on Oct. 28, according to Bloomberg data. Another shipbuilder Evergreen Holding Group Co. defaulted in May.