China's Yunnan Coal Becomes Latest Miner to Struggle With Debts
- Company and its units owe 1.3 billion yuan of overdue loans
- Yunnan government is monitoring the miner's cash problems
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Yet another Chinese coal miner is struggling with debt payments as the slumping economy curbs demand and spurs defaults.
State-owned Yunnan Coal Chemical Industry Group Co. and its businesses had 1.31 billion yuan ($205.6 million) of overdue loans as of Oct. 30 due to rising borrowings and a cash shortage, its unit Yunnan Yunwei Co. said in a Shanghai Stock Exchange statement dated Tuesday. China Chengxin International Credit Rating Co. lowered the parent’s issuer rating to BB from AA on Nov. 13, and put the firm on notice for a possible further cut.