Tewoo Debt Plan Shows China Is Allowing State Firms to Fail
- Commodity producer faces risk of major dollar bond default
- Company’s woes highlight concern over finances in Tianjin city
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Being state-owned in China no longer means being supported by the state, if the case of a troubled commodities trader is anything to go by.
Tewoo Group Corp. proposed Friday that investors either suffer losses as much as 64% or accept delayed repayment with sharply reduced coupons on $1.25 billion of dollar bonds.