China's Tianjin Government Orders Bohai Steel Restructuring Start by September

The government of the Chinese city of Tianjin, the only shareholder of bankrupt Bohai Steel Group Ltd, is demanding that Bohai’s creditors and strategic investor implement a bankruptcy restructuring plan by the end of September, two creditor sources with direct knowledge of the matter said, Reuters reported. Bohai Steel, a former Fortune Global 500 company that was founded by the Tianjin municipal government in 2010 by merging four local steelmakers, collapsed in 2016 with more than 200 billion yuan ($28.4 billion) in unpaid debt, the biggest bankruptcy restructuring in China’s history. The company’s demise followed years of over-expansion fueled by easy credit that left it heavily leveraged when steel prices plunged to record lows in 2015. Read more