SHENZHEN-LISTED Internet technology company China Cloud Live Technology Group Co., which last month became the country’s second company to default on onshore bonds, will repay the interest and some principle on the securities.

    The restaurant-turned-Internet company will pay 35 percent of the face value of the 6.78 percent bonds, which it issued 480 million yuan (US$77.3 million)in 2012, to investors who had exercised an option to sell the notes back April 7, according to a statement yesterday. Cloud Live will also repay all the bond interest due April 7, it said.

    The belated partial payment came after a report showed a Chinese manufacturing gauge fell to a 12-month low in April, suggesting government efforts to avert a slowdown are yet to revive the nation’s factories.

    China’s onshore bond market had two defaults in April, following the first ever in March 2014.

    Cloud Live will also pay bondholders a penal sum due to the delayed payment, according to the statement. The interest plus the penalty is 6.8199 per yuan for each bond with a face value of 100 yuan.

    Cloud Live said April 6 that it had raised 161.4 million yuan for the debt payment due the following day and still had a gap of 240.6 million yuan.

    The company said last month it also failed to repay interest March 21 on 110 million yuan in trust loans borrowed from Beijing International Trust Co. (SD-Agencies)