Caixin Global普通文章CHINA Mayor's Detention Undermines Bohai Bailout
09.19.2016 19:17

Mayor's Detention Undermines Bohai Bailout

Plan to save troubled steel maker crumbles after main backer, former Tianjin Mayor Huang Xingguo, accused of corruption
By Wu Hongyuran and Wang Yuqian

(Beijing) — A controversial plan to save a state-owned steelmaker is in doubt after the plan's main architect was detained on suspicion of corruption.

Tianjin Mayor Huang Xingguo's removal from office and detention on suspicion of corruption deals another blow to Beijing's efforts to downsize a bloated sector dominated by local interests.

The northern city of Tianjin had announced a new plan on Sept. 11 to help the locally based Bohai Steel restructure its debt, worth more than 192 billion yuan ($28.8 billion) owned to 105 Chinese and foreign banks and other financial institutions.

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