Tsinghua Unigroup defaults again

Author: EIS Release Date: Jan 11, 2021

Tsinghua Unigroup, which was planning to build a DRAM fab, is to default again on a second debt obligation, reports the Nikkei.

Last month Unigroup defaulted on a $199 million onshore bond.
Now it has defaulted again on on $2.5 billion of offshore bonds after failing to repay a $450 million Eurobond,
Yesterday, Tsinghua said “payments of the principal and the last installment of interest on the Bonds are not expected to be made by the Issuer or the Guarantor on their due date,” adding that it is  “of the view that an event of default under the Conditions due to a failure to pay the principal and interest on the Bonds will occur,” adding that it is “looking into various ways to solve their current liquidity issue.”

Unigroup’s defaults, and the collapse of other semiconductor projects in China, have called into question China’s commitment to the sector.