Debt to Equity Dead

No big shock here as banks were never interested.

FT: China’s debt-for-equity swaps are a mess

Take, for example, the first, and so far only, large-scale debt-for-equity swap to be presented to investors in detail. Stripped of legalese and circumlocutions, Huarong Energy’s statements to the Hong Kong stock exchange about a proposed Rmb17bn transaction with 22 bank creditors — and more than 1,000 supplier creditors — provide a fascinating insight into just how messy these transactions can become.

Huarong Energy, whose primary assets are oilfields in Kyrgyzstan’s volatile Fergana valley, began life as China Rongsheng Heavy Industries, a private-sector shipbuilder.

Related: China's Largest Shipyard Now A Ghost Town