Subsidiary May Default on 2 Bln Yuan Bond Debt, Sinosteel Says

(Beijing) – The financial condition of indebted Sinosteel Corp., a state-owned steel maker and resource trading company, seems to have deteriorated, as it warned investors recently that one of its subsidiaries may default on a 2 billion yuan bond debt.

The firm appealed to investors in a letter not to redeem the bonds on October 20, the earliest date they can. Investors who wanted to do so were required to notify the company in advance.