COAL miner and pig iron producer Sichuan Shengda Group Ltd. is still seeking to restructure its assets ahead of bond payments due early this week, a spokesman for the company said Friday.

    Last month, Sichuan Shengda flagged the risk of a default, saying in a statement to the market it was “not sure whether it can make payments due to very tight liquidity” as a result of the poor economic environment.

    The privately-owned company needs to pay bondholders both principal and interest today to avoid a potential 300 million yuan (US$46.89 million) default.

    Although the company said it was seeking to avoid a default through asset restructuring, a Sichuan Shengda official contacted Friday said the restructuring efforts were still “in progress.” She declined to comment on what the company would do if it fails to make payments.

    Sichuan Shengda issued the 2018 bond Dec. 5, 2012, giving investors the option to sell back the debt in three years, with a fixed annual yield of 7.25 percent.

    Underwriter Guotai Junan Securities Co. said Friday the issuer has been in constant touch with bondholders.

    Sichuan Shengda’s subsidiary’s pig iron production is in halt because of falling prices and a cash shortage, said Bank of Tianjin Co., Sichuan Shengda’s notes’ trustee manager, in a statement Nov. 26.

    Sichuan Shengda and its subsidiary had a total of 514.41 million yuan in overdue borrowings as of Nov. 25, according to Bank of Tianjin’s statement. (SD-Agencies)