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Another ‘Zombie Company’ Seeks Reorganization

By Dong Jing and Dong Tongjian
Dalian Machine Tool Group Corp. had a net profit margin of only 3% for the first nine months of 2016, the latest data the company has released. Above, visitors of the 11th China International Machine Tool Show in Beijing inspect equipment manufactured by Dalian Machine in April 2009. Photo: IC
Dalian Machine Tool Group Corp. had a net profit margin of only 3% for the first nine months of 2016, the latest data the company has released. Above, visitors of the 11th China International Machine Tool Show in Beijing inspect equipment manufactured by Dalian Machine in April 2009. Photo: IC

Bankrupt Dalian Machine Tool Group Corp. has officially entered reorganization proceedings, becoming the latest Chinese “zombie company” to fail amid tightened liquidity and the sector’s overcapacity.

The Intermediate People’s Court of Dalian, in Northeast China’s Liaoning province, accepted a petition from Dalian Machine’s creditors on Friday that requested the machine-tool maker restructure its debts and businesses.

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