Shandong Shanshui Cement Group Ltd, which defaulted on a bond payment in November, has announced that it is at risk of defaulting on another bond maturing soon.
The cement firm is a subsidiary of Hong Kong-listed China Shanshui Cement Group Ltd.
The company announced that it might be unable to pay interest and principal on a US$277.64 million medium-term note maturing on 21 January 2016.
Defaults have increased in 2015 among onshore Chinese firms, particularly in the heavy industrial sectors including steel and cement.
China Shanshui Cement Group’s largest shareholder has said it will help repay Shanshui’s debt if its proposed changes to the board are passed at the forthcoming EGM.