Billionaire Chinese tycoon Wu Ruilin defaults on 100 million yuan of bonds owed to retail investors
Chairman of telecom company Cosun Group, reportedly richer than Baidu CEO Robin Li, cited ‘tight cash flow’ for the default
A super rich Chinese businessman has defaulted on bonds worth 100 million yuan that he raised from retail investors, citing “tight cash flow”, according to reports.
Wu Ruilin, chairman of the Guangdong based telecom company Cosun Group, has a personal fortune of 98.2 billion yuan, China Business New (CBN) reported on Wednesday, citing an audit report issued by a third party.
That makes Wu wealthier than Baidu’s founder Robin Li, who has 98 billion yuan and is ranked 8th on the Hurun Rich List 2016.
According to a notice put up by the Guangdong Equity Exchange on Tuesday, two subsidiaries of Cosun Group are each defaulting on seven batches of privately raised bonds they issued in 2014.
“The issuer had sent over a notice on December 15, claiming not to be able to make the payments on the bonds on time, due to short-term capital crunch,” the notice said.
Wu is making unlimited guarantees for the principal and interest on the bonds with all of his legitimate wealth. Meanwhile, Zheshang Property and Casualty Insurance Company is responsible for the bonding insurance that guarantees scheduled payments of interest and principal on the bond, the notice said.