Chinese Education Firm XJ Says It’s Solvent Months After Default

A Chinese education firm made an apparent about-face this week by saying it has been solvent, just two months after citing financial conditions for defaulting, a flip that risks fueling creditor allegations that it had willfully failed to pay.

XJ International Holdings Co.’s legal representative said in a Hong Kong court Tuesday that its interim results for the six months through February showed “healthy operating status.”

That contrasts with events and statements in early March, when XJ defaulted on $315 million of convertible notes after holders used an option to demand repayment. The firm said then that its ...