Qinghai Provincial Investment Group said on Tuesday that it missed the 22 February interest payment on its US$300 million 7.25 percent bonds due in 2020 due to “an internal administrative error,” which has resulted in a technical event of default.
“The issuer took immediate steps to rectify the internal administrative error and on 27 February 2019, the issuer paid the interest that had been due,” the metals processing company said in a filing to SGX on Tuesday. “The issuer has previously been able to meet all of its interest payment obligations under the bonds in a timely manner.”
While the payment was made within five days of its due date, it triggered a cross-default under the terms of its US$250 million 7.875 percent bonds due 2021, Qinghai Provincial Investment said.
It added that it hasn’t received any acceleration notice, or demand to repay the bonds in full, from its trustee or bond holders for either bond issuance.
Qinghai Provincial Investment is planning ahead from here from the 22 March interest payment for both the 2020 and 2021 bonds: “As at the date of this announcement, the issuer confirms that it has already earmarked funds in its bank account for the payment of such interest.”
The company, which produces electrolytic aluminum and aluminum base alloys, didn’t provide details of the administrative error.