NEWS - Guangxi Nonferrous officially declared bankrupt - report

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Vivian Teovivian.teo@fastmarkets.comJoint News Editor - Asia

Singapore 20/09/2016 - A court in southern China has officially declared Guangxi Nonferrous Metals Group bankrupt, according to an official report. 

The intermediate court in Guangxi's capital, Nanning, on September 12 ended Guangxi Nonferrous' reorganisation process and declared the company bankrupt after it failed to propose a court-ordered reorganisation plan within a six-month window, the People's Court Daily, the official newspaper of the country's Supreme People's Court, said in a Monday notice.

Early in June last year,  the firm said it had run into difficulties repaying its bonds amid growing losses. it subsequently filed for bankruptcy in December and defaulted on bond payments, local media reported.

The firm, owned by the Guangxi regional government, had owed 14.51 billion yuan ($2.2 billion) to more than 100 creditors including financial institutions and private bondholders, China's Caixin reported in March.

Guangxi Nonferrous is a leading shareholder in China Tin Group, also known as Liuzhou Huaxi Group. The tin smelter had experienced intermittent disruptions to its operations in recent years, industry sources said. 

Last year, it produced around 11,000 tonnes of refined tin out of capacity of 25,000 tonnes per year and had carried out a month-long maintenance shutdown in mid-July, according to the International Tin Research Institute (ITRI).



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