Seven steel companies in China have been declared bankruptcy and were directed to reorganise, consolidate and liquidate as they struggling to service their debts, according to China Metallurgical News.

 

Guangdong Qiguang Steel and Dongguan Yixin Steel

The two steelmakers were consolidated and liquidated in March. They were reported as insolvent and owed wages, pension and insurance to their employees. 

 

Anhui Jixian Zhengda Steel Industry

In April, China’s National Enterprise bankruptcy court in Ji county, Anhui Province declared Zhengda Steel Industry bankrupt as 

the court concluded that the company cannot service its debts due to obvious lack of ability to pay off and that its assets were insufficient to pay off all its debts. 

 

Hebei Haude Steel Plate Company 

The companywas unable to pay off debt as on June 9. The court of Jingxian County directs Haude Steel to increase the operations of customer substitute material processing, reduce operating capital and promote new products in 2020. Since Haude lacks the ability to pay off debts the court has accepted its reorganization application.

 

Kaifeng North China Iron and Steel Co.ltd and Kaifeng Jinrui Silicon Steel Sheet 

The two companies had applied for merger and bankruptcy liquidation procedures. The court ruled the reorganisation of the two companies on May 12, citing that if the reorganisation is successful, it will be in the interest of the debtors and all the creditors. 

 

Juigang Group Yicheng Steel was declared bankrupt on Feb 28, while Zhengzhou Zengqi New Iron and Steel’s bankruptcy liquidation application was accepted on Jan 13 by the court of Zhengzhou Airport and Economic Zone. Foshan Shunde Yusheng Stainless Steel, a stainless steel sheets and cold-rolled products producer was ruled bankrupt in April. 

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