CHINA-ECONOMY: CHINESE SOE INITIATES RESTRUCTURING PLAN TO RESOLVE NEARLY 150 BILLION YUAN (US$ 22 BILLION) DEBT

Creditors of Peking University Founder Group Corp. (PUFG) approved a plan (November 19) to restructure the state-owned industrial and investment conglomerate as part of its efforts to resolve its nearly 150 billion yuan ($22 billion) debt pile. About four-fifths of the 446 creditors with voting rights who attended an October meeting voted in favour of the plan, which provides that the PUFG will merge with three subsidiaries and one affiliate. PUFG, which is owned by Peking University, one of China’s oldest and most prestigious tertiary institutions, rocked the market in December 2019 by failing to repay a 2 billion yuan bond. The default underscored the financial squeeze on Chinese businesses amid slowing economic growth and especially concerns about the weak finances of debt-laden business arms of Chinese universities.





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