| Code: 14572 |

TIN news:    Chinese construction company Huatong Road & Bridge Group announced its inability to honour ¥400m ($64.5m) worth of bonds that are due later this month.
 
In a notice to the Shanghai Clearing House, the company said it would not be in a position to repay the bond holders as its chairman Wang Guorui is assisting authorities in an official investigation.
"Huatong would be the first company in China to default on both the principal and interest payments."
 
Huatong would be the first company in China to default on both the principal and interest payments. The total debt on the one-year 7.3% bond is CNY429.2bn.
 
It is reported that the company had approximately CNY8bn in liquid assets in mid-2014.
 
Recovering receivables and accessing short-term funding is difficult for the company as Wang is in charge of operating and fundraising. He allegedly holds a 60.25% stake in the company in Huatong.
 
Huantong's statement is the second major announcement of debt default after Shanghai Chaori Solar Energy Science and Technology failed to pay CNY89m ($14.35m) interest on bonds in March.

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