Caixin: Dongbei Special Steel Group Forced Into Bankruptcy
China's largest specialty steel producer was finally driven into bankruptcy after the company defaulted on 3.6 billion yuan ($540 million) in debt, missing eight payments since March, according to a creditor document circulated online.Creditors are curious:
The Liaoning provincial government "has confirmed that Dongbei Special Steel Group will enter bankruptcy proceedings, and the bankruptcy plan is expected to come out by the end of September, and the provincial government demands the implementation of the plan to be completed in October," says a creditor meeting summary that began circulating online Wednesday morning.
Earlier last month, the steelmaker resisted pressure from its bondholders to file for bankruptcy. The about-face raised questions among investors about the amount of assets that the company still had.Back in July, creditors were ready to shut down Liaoning province over Dongbei Steel and the government's refusal to follow market rules.