What will happen if the company defaults on its debts?

Legal analysis: if a company as a legal person fails to perform its due debts, resulting in breach of contract, it shall pay overdue interest. If the performance does not conform to the agreement or fails to perform, it shall bear the liability for breach of contract in accordance with the contract or agreement signed by both parties.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 676 If the borrower fails to repay the loan within the agreed time limit, it shall pay the overdue interest in accordance with the agreement or the relevant provisions of the state.

Article 577 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, it shall be liable for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 578 Where a party expressly expresses or shows by his own behavior that he will not perform his contractual obligations, the other party may require him to bear the liability for breach of contract before the time limit for performance expires.