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Deals

Court in China declares state-run metals firm bankrupt

SHANGHAI (Reuters) - A court in southern China has formally declared bankrupt Guangxi Nonferrous Metals Group Co Ltd, an unlisted state-run metals producer that defaulted on a bond in February and missed a payment in April.

The firm, which is owned by the Guangxi regional government, had failed to propose a court-ordered reorganization plan within a six month window, the intermediate court in Guangxi’s capital Nanning ruled on Sept. 12 according to a statement posted online on Monday.

As such, the restructuring period was brought to a close and the company was declared bankrupt, it said.

Steel producers and metals smelters have been among the hardest hit of China’s industrial firms amid a slowing economy and extended real estate downturn, which bottomed out in the second half of 2015 bolstered by government support measures.

Calls to Guangxi Nonferrous were not answered.

In April it missed a payment on a 500 million yuan ($77 million) three-year private placement note with a 5.56 percent coupon rated BB.

The metals producer cited in the notice “consecutive losses and the fact that it has already entered bankruptcy reorganization procedures” as reasons for the missed payment.

(This story has been refiled to clarify status of Guangxi government in second paragraph)

Reporting by John Ruwitch and Li Hongwei; Editing by Michael Perry

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