Dandong Port defaults on final note payment

Dandong Port defaults on final note payment

Dandong Port, a major gateway port in northeast China, has announced that the company failed to make payments on its medium term notes which expired on October 30.

Dandong Port issued the RMB1bn ($150m) three-year notes in 2014 and the company has only paid RMB58.6m ($8.85m) of interest to the trustee so far.

The company said the default is mainly due to heavy debts and high short-term payment pressure.

China Lianhe Credit Rating has lowered the company’s rating from AA to C due to the default, made worse as the company didn’t issue any warning regarding the payment default prior to the expiration of the notes.

Dandong Port also has another six upcoming note payments totalling RMB6.95bn.

Dandong Port, controlled by local multisector enterprise Rilin Group and businessman Wang Wenliang, founder of Rilin Group, is one of the few private-owned seaports in China. The port, which is situated on the border with North Korea, reported a net profit of RMB539m for the first three quarters of 2017.

In September last year, Wang Wenliang was involved in a bribery scandal in an election of representatives for the National People’s Congress, and later resigned from the group in August 2017.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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