A former high-end restaurant company that switched its focus to the technology sector could become the first Chinese company to fail to repay principal on the public bond market.

Cloud Live Technology Group Co., formerly known as XE Flavor Group Co, has said it is unable to raise the 240.6 million yuan ($39 million) needed to make note and interest payments due on Tuesday.

If a solution cannot be found before the deadline, it will become the first company to fail to repay principal to local bond investors.