Chinese Fertilizer Firm Is Test Case for Local Bond Recasts
- Qinghai Salt Lake’s debt plan includes haircut of up to 40%
- Firm’s creditors will vote on restructuring plan on Jan. 17
A barge pumps brine from an evaporation pond operated by Qinghai Salt Lake Industry Co. in Golmud, Qinghai province, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
A Chinese fertilizer maker is being watched closely after it became a rare state-owned company to initiate a court-led debt restructuring, that could result in losses for some of its onshore creditors.
Qinghai Salt Lake Industry Co. is a state-owned firm located in sparsely-populated province in northwest China that mainly produces potash. A local court in the province threw a lifeline to Qinghai Salt Lake in September by accepting a creditor’s request to restructure the firm amid its financial troubles.