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Chinese Coal Firm Wintime to file for Bankruptcy

Coal News - Published on Tue, 07 Jan 2020

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Reuters reported that a listed Beijing-based Chinese coal conglomerate Wintime Energy Co Ltd that defaulted on bonds worth about USD 2 billion could file for bankruptcy under a restructuring plan proposed by creditors. Wintime Energy Co Ltd, saddled with debt worth more than USD 10 billion, would use a combination of asset disposals, debt-for-equity swaps and extended deadlines to improve its debt structure and ease liquidity stress, according to the plan. The company and a creditor source confirmed the proposal as genuine.

Under the proposal, Wintime will repay a portion of its CNY 29.3 billion (USD 4.20 billion) in unsecured debts through asset disposals and debt-to-equity swaps. The remaining debt will be extended for 12 years, with repayments financed by cashflows generated by subsidiaries. Wintime's subsidiaries will restructure their debt out of court as a supplementary plan through asset disposals and term extensions, according to the document.

A bond investor, who declined to be identified, said that the proposal is still subject to negotiations as the restructuring could risk Wintime's major shareholders losing control of the company.

The document sets a deadline of Jan. 17 for feedback on its proposals.

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Posted By : Rabi Wangkhem on Tue, 07 Jan 2020
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