BEIJING (Reuters) - China's state asset administrator appointed government asset firm Chengtong Group to manage China Railway Material Group, a state-owned firm that has struggled to make debt payments.
The State-owned Assets Supervision and Administration Commission (SASAC) said in a statement on Friday that China Railway Material Group has pursued irrational expansion between 2009 and 2013 and suffered losses as a result. The company has been exposed to debt risks and is not able to make debt payments.
On April 11, China Railway Materials said it sought to suspend trade in 16.8 billion yuan ($2.60 billion) worth of its debt instruments, making it the first enterprise owned by the central government to request a suspension in the trading of its debt due to repayment problems.