China’s Shanshui Cement to wind up after failing to pay debt

PUBLISHED : Wednesday, 11 November, 2015, 10:09am
UPDATED : Wednesday, 11 November, 2015, 10:09am

Hong Kong-listed China’s Shanshui Cement group filed for winding up on Wednesday after confirming its failure to repay 2 billion yuan of onshore notes due on November 12 .

This will trigger cross default which includes its US$500 million 7.5 per cent bonds due 2020, the company said in a statement.

The Board filed a winding up petition and an application for the appointment of provisional liquidators with the Grand Court of the Cayman Islands, after the close of trade on Tuesday.

The country’s seventh-largest cement manufacturer has suffered a battle for control since April as China Tianrui Group Cement Co. increased their stake in Shanshui to 28.16 per cent to become the largest stake holder while trying to expel the current board.

Shanshui had to buy back its US$400 million of offshore notes in July upon activating the change of control clause, and this resulted in financial strain for the company.。

Its shares have been suspended since mid-April.