Category
- Agriculture
- Automobiles and Machinery
- Bank, non banking financing, investment
- Blasting
- Construction
- Consumables
- Education
- Energy
- Engineer , Architecture and Geodesy
- Finance, Audit,Accounting and Brokerage
- Food
- Foreign Trade
- Geology Exploration
- Health
- Information Technology
- Insurance
- Labor Safety
- Legal and Business consulting
- Lighting
- Mining equipment
- Mining Services
- Other product and service
- Road
- Sewing and textile products
- Transportations
- Travel
Events
China's state-owned steel maker goes bankrupt www3.nhk.or.jp
A Chinese state-owned steel maker has entered into a bankruptcy restructuring process. The firm has been seen as an example of a "zombie company," which loses money but stays afloat with help from local authorities and banks.
The state-run Xinhua news agency reports that a court accepted a bankruptcy reorganization application from a creditor of Dongbei Special Steel Group on Monday. The firm's debts are estimated at 8 billion dollars.
Dongbei is based in the northeastern province of Liaoning. Its finances have been hit hard by the drop in steel prices and burdens from past major investments. It has defaulted on debts 9 times since March.
Production overcapacity of steel and coal, which has caused the prices of steel and other materials to collapse, has been named as one reason for China's economic slowdown.
The restructuring of such zombie companies is part of the government's reform plan to secure stable economic growth.
Published Date:2016-10-11
