(Bloomberg) — A series of bankruptcy filings by major private-sector bond issuers in Chinas third-wealthiest province is shining a spotlight on aggressive efforts by local governments to manage unsustainable debt loads.
Four debtors have entered bankruptcy procedures since the start of November in Dongying, a city of 2 million in the eastern province of Shandong that once thrived with a booming tire-making industry. While China sees thousands of bankruptcies each year, instances of court-led restructuring of publicly issued bonds have been rare. Authorities in other cases have encouraged workouts with creditors, raising questions about the Dongying examples.
Shandong SNTON Group Co., an iron-wire maker, entered bankruptcy last month.China…
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