SHANGHAI Jan 23 China Credit Trust Co Ltd,
whose product could set a landmark precedent for default in
China's fast-growing shadow bank sector, said it is in
discussions with new investors in an effort to raise the funds
necessary to pay off current investors when the high-yielding
product matures on Jan. 31.
China Credit Trust also told investors in "Credit Equals
Gold #1 Collective Trust Product" that the debt-ridden coal
company whose loan from the trust company is about to mature has
received a key government permit that will allow it to restart
production on one of its coal mines, according to a statement
from the trust company to investors obtained by Reuters.
Such a restart could enable the coal company, Shanxi Zhenfu
Energy Group Ltd to generate the revenue necessary to repay
Industrial Commercial Bank of China ,
which helped market the trust product to wealthy investors
through several branches, has previously said it would not bear
the "main responsibility" for repaying investors.
($1 = 6.0513 Chinese yuan)
(Reporting by Gabriel Wildau; Editing by Kazunori Takada)