Chinese transformer manufacturer applies for bankruptcy
China: Five months after Baoding Tianwei Group became the first state-owned Chinese company to publicly default on a bond payment, the Chinese manufacturer of power transformers will apply for bankruptcy protection, reports Reuters.
China: Five months after Baoding Tianwei Group became the first state-owned Chinese company to publicly default on a bond payment, the Chinese manufacturer of power transformers will apply for bankruptcy protection, reports Reuters.
The firm defaulted in April on a $13.44 million (85.5 million yuan) interest payment due for a $235.75 million (1.5 billion yuan) medium term note maturing in 2016.
In a statement posted on the website of the interbank bond market operator on Friday, the company declared that as a result of deteriorating market conditions since 2011 its business had begun encountering difficulties, and it had now exhausted its cash reserves and was unable to pay creditors.
Earlier in September, the company said that four institutional investors had filed a case in arbitration court to demand repayment of principal and interest owed by Tianwei. The plaintiffs are Industrial Bank, Hua Xia Bank, Tongxin Securities and Chang An International Trust.
Source: Reuters
#apply for bankruptcy protection#Baoding Tianwei Group#China#Chinese manufacturer of power transformers#first state-owned Chinese company#power transformer#power transformer #publicly default on a bond payment