Bloomberg has reported that the Grand Court in the Cayman Islands rejected China Shanshui Cement Group’s application to liquidate its business. The decision has cleared the way for major shareholders to figure out a way for the company to repay debt.
Shanshui announced that the court ruled that the company’s directors did not have the authority to present a winding-up petition on behalf of the company.
Shanshui failed to repay US$313 million of onshore notes two weeks ago as a shareholder fight hurt financing.
Tianrui Group Co announced on 17 November that it would lend funds if its proposed restructure of the cement company’s board occurs and triggers early repayment of Shanshui’s US$500 million of 2020 bonds.
The company has announced it hasn’t been able to find financing to repay RMB2 billion in onshore debt and will therefore default on the loan and its 2020 dollar securities.
The group has been wrangling with shareholders over board management for some time, and has announced it is struggling to repay approximately RMB2 billion in onshore debt.