China Shanshui Cement Group has announced that it will default on the RMB2 billion onshore debt due to be repaid on 12 November, triggering a default also on its 2020 dollar securities. As a result, the company has filed a winding up petition with the Grand Court of the Cayman Islands, meaning it will enter liquidation. In the event the Cayman Court grants the Application, restructuring professionals proposed by the Company and approved by the Cayman Court would be appointed to develop a restructuring proposal to deal with the Group’s current financial position.
By commencing such proceedings in the Cayman Islands, the Company will have the benefit of protection in Cayman Islands and time to engage in negotiations with creditors and progress a collective restructuring plan in the best interests of all stakeholders. The provisional liquidators, if appointed, will also be seeking the extension of that protection to the Company’s operations and activities in Hong Kong. The Company will keep the shareholders and the public informed of the progress of the Winding-up Petition and the Application by way of further announcement(s) as and when appropriate.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/11112015/china-shanshui-cement-to-enter-liquidation-957/