Dongbei Special Steel Defaults Again on USD105 Million Bonds
Yicai Global
/SOURCE : Yicai
Dongbei Special Steel Defaults Again on USD105 Million Bonds

(Yicai Global) Sept. 19 -- Debt-riddled steelmaker Dongbei Special Steel Group Co., Ltd. announced that it was facing insolvency risks regarding USD105 million (CNY 700 million) in bonds the company has issued, marking the second declaration by the company of its inability to repay its bonds this month, and its ninth default on bond repayments over the past five months, increasing the aggregate principal of its defaulted bonds to nearly CNY5.8 billion.

Dongbei Special Steel Group is a large local state-owned steelmaker, and its actual controller is the State-Owned Assets Supervision and Administration Commission of Liaoning Province, with direct and indirect shareholdings totaling 68.81 percent. The company has suffered difficulties in its business operations following the slowdown in China's economic growth, raising money through bond issues with the assistance of underwriters, despite continuous losses.

Previously, the company proposed a debt-to-equity swap with its creditors to resolve the debt crisis, but the plan aroused strong objections from creditors.

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