Bankrupt Haixin Steel reorganizes

Haixin Iron and Steel Group, the largest private iron and steel enterprise in Shanxi Province, has started bankruptcy reorganization procedures, according to a local court yesterday.

The company, located in Wenxi County, had an annual steel output of 5 million tons and was ranked second only to state-owned Shougang Changzhi Iron and Steel Co in the province.

According to public data, the company had 10.46 billion yuan (US$1.7 billion) in debt compared with 10.07 billion yuan in its account. Production was suspended on March 18 due to industry overcapacity, a stagnant market, tightened credit and management issues.

In August, four lenders to Haixin filed bankruptcy plans to the Yuncheng Intermediate People's Court, aiming to reorganizing five firms within the group.