Liquidation of Jiangsu Tieben Steel Imminent

飞雪寒冰

As soon as Dai Guofang, the former Tieben Steel CEO, gained his freedom, Jiangsu Tieben Steel Co. Ltd. announced it will soon enter bankruptcy procedures.

On August 10, the publicity department of Changzhou, Jiangsu province, confirmed that "most likely within two weeks, at the latest within two months," the Intermediate People's Court of Changzhou will declare the bankruptcy and liquidation of Tieben and the auctioning of company assets.

The bankruptcy and auction should conclude one of the best-known examples of illegal collusion between local government and the corporate sector in the evolution of China's steel-making industry.

Caijing learned from a variety of sources that staffers from local government, creditor banks and other related agencies have been sent to Tieben to revaluate the company's assets prior to liquidation