China's Crackdown on Defaulters Starts to Embolden Creditors

China's Crackdown on Defaulters Starts to Embolden Creditors


China’s Crackdown on Defaulters Starts to Embolden Creditors
Bloomberg
2/24/2021
Bloomberg News
(Bloomberg) -- Chinese bondholders are gaining more power in the corporate restructuring process, underscoring a renewed push by authorities to reform the nation’s $5.2 trillion credit market.
Following a slew of defaults late last year that rattled markets, disgruntled creditors have successfully pushed for borrower concessions that would have seemed out of reach in China only a year ago. They reversed a major automaker’s plan to make a profitable unit less accessible to bondholders, forced an energy producer to sweeten a debt swap offer and secured an unprecedented court ruling that required a construction company’s underwriter, rating firm and auditor to compensate individual bondholders.

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