China: Shanshui Cement has decided to apply for provisional liquidation after determining that it will default on onshore debt payments due on 12 November 2015, a sign that Chinese authorities have become willing to allow weak firms to fail, according to Reuters.
The privately-owned company had been struggling to raise funds as its operations have been hit by overcapacity in the sector. "It's a sign that bailouts are not for everybody and that the slowing economy is taking its toll on the non-investment grade sector," said Warut Promboon, Chief Rating Officer at Dagong Global Credit Rating.
Shanshui Cement said that the petition would constitute a default for US$500m in bonds due in 2020 and trigger an accelerated repayment clause. Its shares have been suspended from trading since April 2015.