Beijing Floats Extension of Debt-to-Equity Plan to Wider Range of Creditors

(Beijing) – A controversial program that would allow struggling companies to give equity to banks instead of repaying their loans could be extended to other creditors like suppliers, under a new State Council proposal issued this week.

A new document released yesterday appears to show the State Council, China's cabinet, wants non-financial enterprises like suppliers to swap their accounts receivable for equity in firms that can't pay their bills.