SHENZHEN-LISTED bottle maker Zhuhai Zhongfu Enterprise Co. is likely to miss bond repayments maturing this week, as regulators show increased tolerance for bond defaults even as economic growth slows.

    The firm, which works with clients such as Coca-Cola Co. and PepsiCo Inc., said it is 447 million yuan (US$72.16 million) short of making full payment on its three-year note due May 28.

    “There are relatively big uncertainties” on whether the company can make full payment on time, said Zhuhai Zhongfu in a statement.

    If the company misses the payment, it will mark the fourth public bond default in China’s onshore bond market, and comes shortly on the heels of another onshore default in April and an increased tempo of Chinese corporate bond defaults offshore.

    Zhuhai Zhongfu had previously warned investors May 15 that it might miss payments on the bond. The issue in question is a 590 million yuan 5.28 percent coupon, three-year bond maturing this month.

    The company has previously reported losses for 2012 and 2013. It has 174.15 million yuan in a special account for debt payments, it said. A bank consortium rejected its application for a loan of 500 million yuan this month.

    Zhuhai Zhongfu said it is in talks with its major shareholder for help in repaying the bond. It also said it is trying to get payments due from its customers.

    It said lenders including Bank of China Ltd. and China Everbright Bank were restricting how it could use the approximately 61 million yuan in its accounts.

    Baoding Tianwei Baobian Electric Co. missed an 85.5 million yuan payment last month, the first public default by a Central Government-owned firm on a bond payment, but so far neither the parent nor any other guarantor has stepped in. (SD-Agencies)