China’s Winsway Enterprises has filed for bankruptcy protection in the US as part of a proposed plan with bondholders to restructure more than US$349 million in debt, the Wall Street Journal reported.
The Hong Kong-listed Chinese coal firm made a Chapter 15 filing in New York a day before the bonds are set to mature, the report said.
Chapter 15 bankruptcy will allow troubled international companies to shield US assets while they work out their financial troubles elsewhere.
Winsway, formerly known as Winsway Coking Coal, is an importer, trader and processor of metallurgical coal, primarily for China’s steelmakers.
The company has been losing money for several years as its coal operations suffered in the wake of cooling demand for Chinese steel.
In the first half of 2015, Winsway is said to have lost about US$204 million on revenue of US$438.2 million.
The debt restructuring calls for bondholders to swap their debt holdings for about US$41.7 million in cash and an 18.75 percent stake in Winsway, according to the report.
The deal has the support of 83 percent of the bondholders, CEO Cao Xinyi was quoted as saying.
– Contact us at [email protected]