Another SOE Goes Bust: Guangxi Nonferrous Metals Group

Caixin: State-Owned Non-Ferrous Metals Firm Files for Bankruptcy

A state-owned nonferrous metals company that documents show has 14.51 billion yuan in liabilities says it filed for bankruptcy late last year.

Guangxi Nonferrous Metals Group Co., a state-owned enterprise in the southern region of Guangxi, said in a statement given to the Shanghai Clearing House, on February 22 that it filed an application for bankruptcy in Nanning Intermediate People's Court in December.

The Shanghai Clearing House is a state-backed financial institution for the interbank market.

Guangxi Nonferrous owed 14.51 billion yuan to 108 creditors, namely subsidiaries, financial institutions, suppliers, construction companies and private bondholders, according to documents one company executive showed Caixin.

More cash didn't help:

n June last year, Guangxi Nonferrous said it was having difficulty repaying its bonds, citing excess capacity and falling prices.

The problem was solved when China Development Bank agreed to help, a bank employee told Caixin. But Guangxi Nonferrous defaulted on two other bond payments that were due in November and February, he said.