Holders of bonds sold by Shanghai Chaori Solar Energy Science & Technology will consider a lawsuit to force payment after the company became the first to default on onshore corporate debt on the mainland.
Investors in the solar-panel maker's 2017 securities will meet on March 26, according to a filing to the Shenzhen stock exchange on Monday from China Securities, which managed the offering in 2012. Noteholders will discuss giving the brokerage the right to participate in restructuring the company and in the sale of collateral for the defaulted securities.
"Bondholders may get principal and interest if the company can be restructured," said Li Ning, an analyst at Haitong Securities. "If a third party takes over ownership and provides capital, the company may be able to repay the overdue obligations."
Chaori paid just four million yuan (HK$5 million) of an 89.8 million yuan coupon payment due March 7. The default is the first in the mainland's US$4.2 trillion bond market since 1997.
The failure is stoking speculation that more companies may miss debt payments after the government pledged to let markets take a "decisive" role in the economy.
China Securities will rely on the roster of Chaori bondholders as of July 5 maintained by China Securities Depository & Clearing's branch in Shenzhen.