China Port Defaulter’s Bankruptcy Ruling Stirs Up a Storm

A port operator in northeastern China once at the center of U.N. sanctions on North Korea is finding itself in another storm, Bloomberg News reported. Dandong Port Group Co. has regained attention after a controversial court ruling in favor of a state-led debt overhaul that forces steep losses on creditors and drew shareholders’ complaints about an opaque bankruptcy process. The court verdict also runs counter to an unprecedented roadmap that Beijing has just laid out to restore investor confidence via fair handling of bond defaults. The Dandong authorities’ iron-fist approach is a reminder that despite Beijing’s repeated pledge to treat all investors equally, a powerful state sector and deeply rooted local protectionism are just among the many hurdles it faces in an uphill battle. Read more

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