China's Debt-Laden Dealmakers Eyed by Restructuring Firms

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Chinese deal makers that racked up debts for overseas deals and are now reversing course to pay down borrowings have attracted the attention of restructuring specialists, Bloomberg News reported. As President Xi Jinping steps up leverage curbs, borrowing costs in China have jumped. The nation’s most high-profile deal makers including HNA Group Co. have come under mounting regulatory scrutiny, and have been selling assets as they try to rein in borrowings. HNA missed payments to several Chinese banks and its bond yields have in recent months traded at times at levels that are often considered distressed. “Chinese companies have been active in overseas acquisitions in recent years and some of their investments have not panned out,” said Damien Whitehead, partner at law firm Ashurst, without naming any specific companies. “Some of these companies are in a tight liquidity situation and their debt may need to be restructured.” Read more.