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China Shanshui Dispute Intensifies as Unit Files Lawsuit Onshore

  • Company's 2020 dollar bond dropped most since Nov. 11
  • Firm says local authorities won't proceed with changes at unit

China Shanshui Cement Group Ltd., which defaulted on bonds last year after a shareholder tussle, faces a mounting management dispute after a unit filed a lawsuit against it.

Shandong Shanshui Cement Group Ltd., its main operating arm, accused China Shanshui of spreading rumors and filed suit in a court in the eastern city of Jinan alleging it released "false and illegal statements," according to an announcement on the unit’s website Monday. Hong Kong-based China Shanshui’s 2020 dollar notes slid 5 cents, the biggest decline since Nov. 11, to 77.8 cents, according to prices compiled by Bloomberg.