THE government of the city of Tianjin, the only shareholder of bankrupt Bohai Steel Group Ltd., is demanding that Bohai’s creditors and strategic investor implement a bankruptcy restructuring plan by the end of September, Reuters quoted two creditor sources as saying yesterday. Bohai Steel, a former Fortune Global 500 company that was founded by the Tianjin government in 2010 by merging four local steelmakers, collapsed in 2016 with more than 200 billion yuan (US$28.4 billion) in unpaid debt, the biggest bankruptcy restructuring in China’s history. The implementation of Bohai’s bankruptcy restructuring plan was approved by a local court in January. The Tianjin government’s debt burden is the highest among China’s provincial-level megacities and provinces, according to S&P Global Ratings, due to a regional economic slowdown. (SD-Agencies) |