China: Shanshui Cement's largest shareholder, Tianrui Group, has provided a US$9.3m loan to the company for interest repayment of the onshore bond of its Shandong subsidiary, Shandong Shanshui Cement Group, which defaulted in November 2015.
The loan facility is unsecured, interest free and has no fixed repayment terms, and has been remitted to the bank account designated for the bond's repayment, according to Shanshui. It didn't mention when the company could also repay the principal of the bonds, which amounted to US$307m, or whether Tianrui will provide further funding. Shanshui defaulted on the bond payment and triggered a cross default of the company's other debt after a shareholder struggle. Shanshui's board, which is now controlled by Tianrui, still faces a mounting management dispute over its Shandong subsidiary with Shanshui's founder and second-largest shareholder, the Zhang family.