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FINANCE

Wintime Group Seeks to Raise $6 Billion After Wave of Defaults

A ratings agency has downgraded Wintime Energy’s credit and bond ratings to CC, which means the company can’t guarantee it will repay its debts even if it undergoes bankruptcy or restructuring. Photo: IC
A ratings agency has downgraded Wintime Energy’s credit and bond ratings to CC, which means the company can’t guarantee it will repay its debts even if it undergoes bankruptcy or restructuring. Photo: IC

A private Chinese company and its energy unit are seeking to raise nearly 39 billion yuan ($5.89 billion) through asset sales and debt-for-equity swaps after the latter defaulted last week.

The efforts of Wintime Group Co. Ltd. and its subsidiary illustrate the scramble to raise money that takes place after a debt-laden company loses access to financing and goes into default. Wintime Group’s financial problems come as a growing number of Chinese companies have defaulted on bonds as the government increases scrutiny on corporate debt amid a national deleveraging campaign.

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