Debt-for-Equity Swaps Expected in Troubled Steel and Coal Firms

(Beijing) – China's banking regulator has signaled that steel and coal firms struggling to repay debt may be the testing ground for a much-discussed program in which bank loans made to troubled borrowers would be converted into equity in those firms.

A draft regulation is the latest development in the debt-for-equity scheme, which has raised high hopes but has been slow to get off the ground.