China: Shandong Shanshui defaulted on a US$270m three-year bond that matured on 21 January 2016. It is the second default for its owners, China Shanshui Cement, since November 2015. The move places Shanshui Cement at increased risk of bankruptcy and complicates plans by Tianrui Group to purchase the company. The previous debt default triggered multiple lawsuits from creditors that have already seen some of its assets frozen or put into impending auctioning, according to the South China Morning Post.
"The underlying cause of Shandong Shanshui's debt problems is unresolved disputes over shareholders' control, which restricted its fund-raising channels," said Shandong Shanshui in a statement. Since the estimated value of the company's assets far exceeds its debt, it expects court-ordered assets sales to bring in less proceeds than claims made by creditors, it added.