The bondholders of financially troubled Dandong Port have approved a proposal at a creditors meeting yesterday to file a lawsuit against the port operator.
Dandong Port has been involved in two major bond payment defaults with payment of RMB1bn due at the end of October and another payment of RMB500m due in January. The port is also facing payments due in the first quarter of 2018 totalling RMB2.4bn.
The post has total liabilities amounting to RMB37bn with its major creditors including 15 banks.
The banks, led by China Exim Bank, jointly formed a creditor committee in January and have been in negotiations with Dandong Port in efforts to find a solution to the debt payment problems.
Dandong Port, located on the border with North Korea, is a major gateway port in northeast China. The port is controlled by local enterprise Rilin Group and businessman Wang Wenliang, who was involved in a bribery scandal in a government election in 2016.