Investors Seek Liaoning Debt Boycott As Bond Default Battle Heats Up

(Beijing) – Bond holders burned by the defaults of a state-owned steel maker in Liaoning province are calling for a boycott of all new bond issuances by the local government and provincial enterprises amid increasing frustration at local officials’ efforts to resolve the company’s debt problem.

They will also ask regulators to suspend the issuance of all debt financing instruments by enterprises in the northeastern province, according to a proposal put together for discussion at an upcoming meeting of investors who hold bonds issued by Dongbei Special Steel Group Co.