Chongqing Iron & Steel creditors vote to approve reorganization plan

By Caroline Salls

Pittsburgh, Nov. 17 – Chongqing Iron & Steel Co. Ltd.’s reorganization plan was approved at a creditors’ meeting held Friday, according to a news release.

Chongqing said all five of the secured creditors with voting rights who attended Friday’s meeting, who hold a total of RMB 9,611,214,651 in secured claims, approved the plan.

In addition, all 8,757 staff creditors who attended the meeting approved the plan. Those creditors held RMB 123.05 million, or 99.33%, of the total staff creditor claims.

Of the 1,386 ordinary creditors with voting rights who attended the meeting, the company said 1,340 approved the restructuring plan. The approving ordinary creditors hold RMB 27,542,518,521 of claims, representing 95.54% of the total ordinary claim amount.

As the secured, ordinary and staff creditors approved the plan, Chongqing said its capital contributors group voted for a plan on adjustment of the rights and interests of capital contributors involved in the reorganization plan.

The company said its administrator will now submit the reorganization plan to the First Immediate People’s Court of Chongqing for approval. If the plan is not approved by a court order, Chongqing will be at risk of being declared bankrupt by the court and would then proceed with bankruptcy liquidation procedures.

If the company is declared bankrupt, its A shares will be delisted, the release said.

The manufacturer and distributor of iron and steel products is based in Chongqing, China.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.