China Shanshui Cement Group may have a saviour in the form of its largest shareholder, Tianrui Group Co., according to a report from Bloomberg. Tianrui Group Co. has been pushing for changes to the Shanshui board and has said that if its motion passes at the EGM scheduled for 25 November, it would help fix the company’s debt problems. Yesterday, China Shanshui Cement failed to pay RMB2 billion of onshore notes, having announced earlier in the week that its shareholder problems were creating difficulties in securing financing that ultimately led it to file a winding up petition with the Grand Court of the Cayman Islands.
Bloomberg reports that Tianrui may not have the capability to offer financial assistance. Much will depend on investors and the lengths they go to to ensure they get their money back.
New research by GlobalData’s MEED has shown that the commercial value of construction contracts issued in the Gulf Cooperation Council (GCC) fell by more than 50% in the first eight months of 2020 compared to the same period in 2019.