Seems Sinosteel has received a last minute bailout from the Chinese Govt, ... extracts from zerohedge.........
"Sinosteel's troubles, which mirror those of peer companies Glencore and Noble Group, did surprise some despite clear warnings by other: "The company has lost debt repayment ability. It can only rely on external support,” Jiang Chao, Haitong Securities bond analyst, wrote last week."
"None of this is a surprise: we reported nearly a month ago that more than half of China's commodity producers are technically insolvent at current commodity prices (a finding which CLSA later used to back into a whopping 8% NPL for the Chinese banking sector), and don't generate the cash flow to pay even the interest on their debt, let alone fund maturities!"
"Ironically, Sinoesteel will now be forced to undercut prices even more to capture marginal cash flow, even if it means a further collapse in iron and steel prices, which incidentally is precisely what happened overnight when as Reuters reported, Shanghai steel futures fell more than 1 percent to an all-time low."
