It was reported that the largest steel company in Chinese northeastern Heilongjiang Province, Xilin Iron and Steel Group (Xilin), had recently gone bankrupt.
The local court had ruled that Xilin should be reorganized. At present, there were more than 1,200 debtors, and nearly RMB 40 billion of debts that had not been fully confirmed yet, waiting for further settlement plan.
However, how much repayment from liquidation could be obtained in the end, it was no way to find out. Xilin will face big challenges in the future even if Xilin found a more powerful strategic investor. In addition, there were full of unknowns in the market, and its location would create higher production costs.
