Liaoning Province-based Chinese steelmaker Dongbei Special Steel Group Co., Ltd (Dongbei Special Steel Group) has announced that it has been unable to make a repayment on ultra-short- and short-term bonds.
The steel producer had been due to repay RMB 1.015 billion ($0.16 billion) made up of principal and interest by Tuesday, April 5. Previously, the company had stated that its ability to repay was uncertain due to the overall sluggishness in the domestic steel industry and its own increased inventories.
In addition, due to a contract dispute between Dongbei Special Steel Group and Shanghai-based International Far Eastern Leasing Co., Ltd, the latter company has successfully applied for the freezing of the 38.58 percent stake held by Dongbei Special Steel Group in Liaoning-based Chinese steelmaker Fushun Special Steel.