Guangxi Nonferrous Metals is China’s first interbank bankruptcy
State-run metals producer defaulted on a bond in February and missed a payment in April
After a struggle to repay its debts since last year, Guangxi Nonferrous Metals Group, the Chinese state-owned metal producer, has finally been declared bankrupt, becoming the country’s first interbank bond issuer to fail.
The company, owned by the Guangxi provincial government, failed to propose a reorganisation plan within six months after a court order, according to a statement released by the intermediate court in the provincial capital Nanning on Monday.
As such, the restructuring period was brought to a close and the company was declared bankrupt, it said.
The company did not respond to emails and calls from the Post on Tuesday.
According to an announcement issued in April, Guangxi Nonferrous Metals missed a payment on a 500 million yuan, three-year private placement note with a 5.56 per cent coupon.
The firm blamed the default on consecutive losses and the fact it had already entered bankruptcy reorganisation procedures.
Two month earlier, a statement from Shanghai Clearing House, the interbank clearing house set up for the settlement and clearing of financial products, said that after consecutive losses Guangxi Nonferrous Metals was insolvent, its production and operations had been halted, and it faced several law suits. The company said several financial institutions had frozen the majority of its assets.
