Liaoning Province-based Chinese steelmaker Bengang Steel Plates Co. (Bengang Steel Plates), a listed subsidiary of Benxi Iron and Steel (Group) Co. (Bengang Group), has announced that it plans to invest RMB 1.038 billion ($0.15 billion) in Liaoning-based Chinese steelmaker Dongbei Special Steel Group, in line with which it will acquire a 10 percent stake in the company within the framework of the restructuring of the latter’s debts.
Since March 2016, Dongbei Special Steel has defaulted several times on payments of bonds. As of December 1, 2016, Dongbei Special Steel had total debts of RMB 70 billion ($10.3 billion), with 374 creditors.