Top China University Group Defaults on $310 Million Bond (1)

The troubled business arm of a top Chinese university has defaulted on a $310 million offshore bond, after entering a court-led debt restructuring and following a recent repayment failure on a local note.

Peking University Founder Group Corp. failed to pay the coupon on the dollar bond due 2021, which has triggered a cross-default on another offshore note, according to a filing to the Hong Kong stock exchange Wednesday. Following a seven-day grace period, the company was unable to deliver interest payment on the $310 million bond originally due Feb. 21, the filing said.

“It’s an uncharted territory, and ...