CEFC China Energy, the once-acquisitive conglomerate, was prepared to pay annual rates of as much as 36 percent for short-term funding in signs of the cash crunch faced by the company, according to multiple sources with knowledge of the matter.

Earlier this month it was revealed that Ye Jianming, the company’s chairman, had been investigated for suspected economic crimes. Guosheng Group, an investment firm owned by the Shanghai government, was tasked with evaluating CEFC’s financial position as part of a restructuring and takeover process, according to two sources.

But from at least the second half of last year, CEFC was approaching shadow bankers — non-traditional lenders — for costly short-term loans, said six sources, in a sign of the strained state of the company’s liquidity.

In early January, CEFC borrowed 1 billion yuan (US$158 million) from the Shanghai-based Bida Holding Group for a 15-day loan with a daily interest rate of 0.1 percent, equivalent to an annual interest rate of 36 percent, said one source.

The company also approached Shenzhen Qianhai Everbright Financial Holding Investment Management, Zhejiang-based Wanxiang Trust and Hebei-based Bohai International Trust, a unit of HNA Capital, for expensive loans, said the sources.

None of the companies lent to CEFC for reasons ranging from concerns over liquidity and opaque ownership to difficulties appraising asset value, the sources said.(SD-Agencies)