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.