Chinese battery firm Shanshan to enter court-led restructuring

A Chinese court accepted a restructuring for lithium-ion battery maker Shanshan Group in one of a growing number of court-led debt plans in the country.

The application was accepted by a local court in the southeastern province of Zhejiang, according to a filing to the Shanghai Stock Exchange dated Thursday.

Shanshan has five yuan-denominated bonds, with a total of 5.1 billion yuan (HK$5.46 billion) outstanding, according to data compiled by Bloomberg.

The number of Chinese-listed companies seeking court-led restructuring rose to a six-year high of 29 last year, according to a report by Shanghai-based AllBright Law Offices. While such a process offers an alternative path for distressed firms, its success hinges on key factors including the introduction of cash-rich new investors.

BLOOMBERG