June 15, 2018 / 10:28 AM / 6 months ago

UPDATE 1-CEFC Shanghai International says ability to repay bonds uncertain

(Adds fundraising, previous default, China CEFC chairman investigation)

SHANGHAI, June 15 (Reuters) - CEFC Shanghai International Group Ltd, a subsidiary of troubled China CEFC Energy Co Ltd, on Friday said it was uncertain it would be able to make principal and interest payments on nine-month commercial paper maturing on June 25.

In a statement posted to the website of the Shanghai Clearing House, CEFC Shanghai said it was actively raising funds for interest and principal payments worth a total of 2.1 billion yuan ($327.19 million), but that its ability to repay was uncertain.

CEFC Shanghai defaulted on bond payments worth 2.1 billion yuan on May 21, a week after saying its ability to make those payments was uncertain.

The company’s ability to service its debt has come into focus following reports in February that China CEFC Chairman Ye Jianming was under investigation for suspected economic crimes.

CEFC Shanghai has 12 outstanding bonds worth a total of 27.6 billion yuan, data from Thomson Reuters Eikon showed, including bonds worth 8.1 billion yuan maturing this year. ($1 = 6.4183 Chinese yuan renminbi)

Reporting by Andrew Galbraith Editing by Christopher Cushing

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