The largest shareholder in China’s latest company to default may extend loans to help it pay off its dollar-denominated bonds.

China Tianrui Group Cement Co. may provide shareholders’ loans with interest to China Shanshui Cement Group Ltd. to support redemption of its $500 million of 7.5 percent notes due in 2020, according to a statement from Tianrui Tuesday. Shanshui missed payment on its 2 billion yuan ($314 million) of onshore securities last week and said that failure to repay those notes would trigger default on the offshore securities.

Tianrui’s statement echoed pledges from Li Heping, vice chairman of Tianrui Group Co., who said in an interview on Nov. 13 that Tianrui would help fix Shanshui’s debt problems if its proposal to change the firm’s board passes at a Nov. 25 extraordinary general meeting.

Another option would be for Tianrui Group to act as co-guarantor to secure third party funding for Shanshui, it said in the statement Tuesday.

Shanshui became at least the sixth Chinese firm to default in the local bond market this year as a slowing economy drags on earnings.

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