Date
19 October 2017

Six trust firms trapped in coal firm’s debt crisis, paper says

Six trust companies may default on obligations on some high-yield investment products due to problems related to the debt crisis of Shanxi Liansheng Energy Group, a coal producer in the northern Shanxi province, the China Securities Journal reported Friday, citing an unidentified source. Jilin Trust, Changan Trust and some others had created investment products backed by a loan to the debt-ridden coal producer, which is causing problems, the paper said. Liansheng’s debts include more than 5 billion yuan (US$819.7 million) trust funds, it said. Arrangements for repayment to investors could be unveiled only after the debt restructuring of Liansheng. A local court said in November that the company and its affiliates had financial liabilities totaling 30 billion yuan and had lost their ability to service their debts.

– Contact HKEJ at [email protected]

KZ/AC/RC

 

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