September 25, 2018 / 1:55 AM / a year ago

UPDATE 1-Jilin Liyuan Precision Manufacturing suspends bond trade after default

(Adds trading suspension, detail on bond issue)

SHANGHAI, Sept 25 (Reuters) - Jilin Liyuan Precision Manufacturing, a maker of aluminium products, said on Tuesday it has suspended trade of its single outstanding bond after defaulting on an interest payment.

In a filing on the website of the Shenzhen Stock Exchange, the company said it was unable to make the interest payment of 51.8 million yuan ($7.56 million) due to cash flow issues, and was in material default.

The company said it would be suspending trade in its 2019 7 percent puttable bond from Sept. 25 because of its inability to make bond payments and to “protect the interests of investors.”

It said it would apply for a resumption of trading after “relevant circumstances” had been addressed.

The company warned last week that it would miss the payment. Jilin Liyuan raised 1 billion yuan ($145.74 million)through the bond issue in 2014. Last year, investors exercised their right to sell bonds worth 260 million yuan back to the company. ($1 = 6.8559 Chinese yuan ) (Reporting by Andrew Galbraith Editing by Eric Meijer)

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