(Shanghai) Creditors of Guangxi Nonferrous Metals Group have vetoed an insolvency plan in a case that shows the obstacles that state-owned enterprises (SOEs) face as they try to complete the bankruptcy process.
In the plan, the firm’s bankruptcy administrators proposed auctioning, presumably at a discount, not only the equity stakes the parent has in its seven subsidiaries but also the debts that the subsidiaries owe to the parent, according to several of the firms creditors who voted on the bankruptcy plan on Oct. 28.
The debt assets proposed for sale include 937 million yuan ($138.3 million) that Guangxi Nonferrous has in Huiyuan Manganese Industry Co. Ltd., 155 million yuan in Guibei Investment Co. Ltd., and 1.07 million …
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