Solar cell maker is first onshore default in China

Beijing

A CHINESE solar cell maker has failed to pay full interest on its bonds, leading to the country's first onshore default and signalling that Beijing would back off from its practice of bailing out companies with bad debt.

Shanghai Chaori Solar Energy Science & Technology is trying to sell some of its overseas plants to raise money to repay the debt, vice-president Liu Tielong said yesterday. The company had said on Tuesday that it would be able to pay only four million yuan (S$827,000) of an 89.8 million yuan coupon due yesterday.