Ten or More Funds Have Stepped on Shanshui Debt Land Mine

Remember Shanshui Cement? Major HK Listed Cement Maker Can't Pay Bonds Issued Seven Months Ago

Perhaps ten or more investment companies have been pulled into this sage should a default spread beyond Shanshui.

The concern is over short-term debts and lawsuits have been brought to courts in Shanghai, Shandong and Shenzhen.
Shanshui Cement Group currently has at least 29 lawsuits lawsuits, the amount of litigation to reach a total of 2.802 billion yuan
Fund companies invested in the debt aren't worried about getting their money back; at the moment everyone seems to think full payment will come eventually. Instead, they're concerned about a short-term cash crunch.
"We judge the management of contention in the current context of intense, ultra-short financial issue certain risks, perhaps untimely payment or incomplete payment, but is expected to eventually large probability can be paid in full. Several expiring within the next six months a total of 2.6 billion of debt under the management of this problem is the implementation of background pressure is not expected to honor. " CRE securities analysts say.

..."If Shanshui Cement's internal equity battle can not reach a good conclusion, debt coming due will likely default. And that may involve as many as a dozen fund companies, in addition to banks, investment management, trusts and other institutions being drawn in." Hao Qidong said.
East Money:多家基金“踩雷”违约债 警惕风险

The mine may be defused before it blows: Shanshui Cement Bonds Jump Most in Two Months on Unit Takeover
The manufacturer “has smoothly taken over the headquarters and additional three factories” of the unit Shandong Shanshui Cement Group Ltd. with the assistance of the local police in the northern city of Jinan, it said in a filing dated Jan. 31. Its $500 million of 7.5 percent notes due 2020 rose 3.4 cents on the dollar to 71.9 cents, set for the biggest daily increase since Nov. 18, according to prices compiled by Bloomberg.
You may recall this news from a month ago: Shanshui HR Disaster: Gangsters Barge Into Board Meeting, Ex-Directors Loot Company, Destroy Books

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