China state-owned non-ferrous metals group declared bankrupt
Updated: 2016-09-22 14:01
NANNING -- State-owned Guangxi Non-ferrous Metals Group Co in South China's Guangxi Zhuang autonomous region has been declared bankrupt, despite a nine-month restructuring push.
According to an announcement published by the intermediate people's court of Nanning City on Sept 12, the company had neither submitted a restructuring plan within six months of the court's initial ruling, nor had it applied for an extension. The court decided to end the restructuring procedure and declared the firm bankrupt.
The group was founded in 2008 with a registered capital of 2.1 billion yuan ($314.8 million). It had 18,000 employees on its books.
The company had filed for bankruptcy with the court in December 2015. Sources with the court revealed in March that the company had over 14 billion yuan in liabilities.
Analysts said the decline of the company was a result of sluggish demand for bulk commodities and illegal investment and corruption due to inadequate supervision.