According to the latest Reuters report, Chinese courts have ordered cash-strapped Shandong Shanshui Cement Group Ltd to pay back its creditors 2.4 billion yuan (US$372 million).
The company announced that it was unlikely to be able to make the required payments due to financial difficulties, and the courts would take steps such as auctioning off the firm's assets to meet these obligations.
Defaults have accelerated among Chinese companies, particularly in the heavy industrial sectors such as cement.
Bond defaults by the cement maker had led creditors to turn to legal avenues to seek repayments.
Shandong Shanshui Cement's statement to the clearing house outlined the current status of almost 100 suits against the indebted company and showed that various courts had ordered it to pay back principal and interest to creditors hurt by unmet bond repayments.
Courts have ruled on eight out of a total 96 cases against the company, although these were some of the largest suits. The total amount being sought is around US$764 million.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/14042016/shandong-shanshui-cement-ordered-pay/