- Baoding Tianwei to look for partners for its reorganization
- More China firms have sought government aid as defualts rise
China’s Baoding Tianwei Group Co., which has defaulted on a bond payment three times, said it’s seeking governmental support while it proceeds with restructuring.
The state-owned maker of electric transformers and polysilicon, a raw material for solar cells, said it will continue to look for partners for its reorganization, according to a statement posted on the website of the China Foreign Exchange Trade System on Wednesday.
More Chinese firms have sought government support as they grapple with record debt redemptions amid weakening economic growth and as Premier Li Keqiang seeks to wipe out so-called zombie corporations. Xining Special Steel Co. said last week local authorities pledged financing support if needed. Heilongjiang Longmay Mining, a state-owned coal miner, said in November it would use funds from the provincial government for bond payments in December.
At least ten firms, including Baoding Tianwei and a unit of solar panel maker Yingli Green Energy Holding Co., have missed local note payments so far this year, exceeding the tally for the whole of 2015.
Baoding Tianwei last year became the first state-owned company to renege on onshore debentures, as an oversupply of solar manufacturing hurts some of the smallest producers. Polysilicon prices have tumbled 80 percent since a peak of almost $80 a kilogram in 2011.
— With assistance by Feifei Shen