H share Northeast Electrical Transmission & Transformation Machinery Manufacturing saw its share price plunge 23.61 per cent to 55 HK cents yesterday amid bankruptcy fears. The plunge came ahead of today's deadline to repay a US$40 million loan plus about US$3 million in interest due to SAR creditors. Last week, a consortium led by CCIC Finance threatened to ask Hong Kong courts to force it into liquidation if debts were not repaid - the first H share to go bust. However, as a mainland incorporated entity, any liquidation is likely to be handled in China, where employees get paid out before creditors. The bankruptcy could be complicated by the fact that the single largest shareholder is a state-owned enterprise. Northeast Electrical said it was negotiating with its creditors. The company, also listed as an A share on the Shenzhen stock market, has been flagged as a 'special trading' stock to warn investors of the risks. It recorded two successive years of losses from 1999 and a loss of 186.76 million yuan (about HK$178.32 million) for the first nine months to September 30 this year.