More Than Half of Chinese Commodity Companies Can’t Pay Debt Interest - from TRUNEWS

A new report shows that a surprisingly high number of Chinese commodity companies cannot pay the interest on their company’s debt.

The report shows that last year about 2 trillion of debt was in danger of immediate default.  Traders dealing in base metals, coal and steel were significantly more likely to be dealing with a debt load carrying an unsustainable interest level.

Some analysts say that up to 2/3 of Chinese commodity companies are now in imminent danger of default.

“Given the slumps in metal and coal prices so far this year, it’s quite likely the curve will have deteriorated further for commodity firms this year, with total debt getting better in the meantime,” Macquarie Group stated.

 

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