China foodmaker Nanjing Yurun says defaults on note repayment

China Yurun Food

17/03/2016 12:45

BEIJING, March 17 (Reuters) - Chinese foodmaker Nanjing 
Yurun Food Co, a wholly-owned subsidiary of China Yurun Food 
Group Limited  1068.HK , has defaulted on a 500 million yuan 
($77.2 million) short-term financing note repayment due on 
Thursday, the company said. 
    According to a statement posted on the website 
chinamoney.com.cn, Nanjing Yurun said it was unable to make the 
full payment on time. 
    China Yurun had warned on March 9 that due to Nanjing 
Yurun's losses in the first nine months of 2015 there was 
"uncertainty" over the timely repayment of the first tranche of 
Nanjing's financing notes.  
    The company said its director, Zhu Yicai, had been placed 
under "coercive measures" in March last year, a term that 
usually means detention, and this had affected the company's 
ability to raise funds. 
    It also blamed the "deterioration in its financial 
circumstances" on negative press reports about food safety, a 
weakness in demand for high-end food products and rising raw 
material costs. 
   ($1 = 6.4786 Chinese yuan renminbi) 
 
 (Reporting by David Stanway; editing by David Clarke) 
 ((david.stanway@thomsonreuters.com; +86 10 6627 1289; Reuters 
Messaging: david.stanway.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA YURUN/DEFAULT