Tianjin halts land sale meant to pay debts of Bohai Steel unit

Updated 2018-05-16 10:46:04

Authorities in Tianjin, a port city in North China, have ordered a court to freeze a land auction planned by a creditor of a former unit of the debt-stricken Bohai Steel Group, according to three sources and documents viewed by Reuters.

Bohai Steel and its units have been undergoing a State-backed debt restructuring program since 2016 as the conglomerate struggles with liabilities of around 192 billion yuan (.26 billion) in one of the most high-profile failures of a State-owned enterprise in years.

The land up for auction, valued at 238 million yuan, had been seized by National Trust, a creditor of the asset's owner, Tianjin Metallurgy Steel Wire and Cable Group, a unit of Tianjin Metallurgy Group that defaulted on a trust loan, according to three sources with knowledge of the matter.

Tianjin Metallurgy Group was a subsidiary of Bohai Steel before it was spun off in 2016 under the Tianjin government-directed rescue plan for the indebted conglomerate.

The land sale suspension would raise questions over the local government's commitment to disposing of assets owned by failing State-owned enterprises.

In a letter dated May 10 sent by Tianjin's land resources bureau to Tianjin No.1 Intermediate Court and viewed by Reuters, the bureau "demanded" that the court halt the auction, citing the expiration of a land license.

The Tianjin municipal government and Tianjin Metallurgy Group didn't immediately respond to faxed requests seeking comment.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58May 26 2018 16:02:51

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16May 26 2018 16:02:51

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18May 26 2018 16:02:51

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords