According to a report by Bloomberg, the contest for China Shanshui Cement Group Ltd. has escalated further as the company’s new management is seeking to take control of its main operating unit. The deposed executives from the shareholder scrap have refused to relinquish the unit.
Liu Yiu Keung, executive director at China Shanshui, announced on 21 December that Shandong Shanshui Cement Group Ltd. is being taken over. According to Henry Li however, who still identifies himself as chief financial officer of Shandong Shanshui, the move is illegal and will hurt the company and its creditors. China Shanshui has already taken over most of the company’s other units.
China Shanshui defaulted on US$309 million of bonds in November after the shareholder fight obstructed financing, triggering early repayment of US$500 million of 2020 notes.