China Eastar Group plungs into 20 billion yuan debt

Recently, Shandong large private company Eastar Group released bankruptcy and reforming plan to its creditors.

The plan showed that the company has confirmed over 10 billion yuan of debt, and its creditors has applied for over 20 billion yuan of debt. The company is also trying to attract investors to restructure the company, but seldom investors showed up.

According to the plan, the company will pay out debt below 100，000 yuan through debt to equity or keeping debt; paying back debt over 100,000 yuan through cash or cash plus debt to equity.

In that case, general creditors's settlement rate could reach 4.27%.

During March to April in 2019, Shandong Dongying Intermediate Court accept Eastar Group's bankruptcy application.

After lawyers' accounting, there was only 3.3 billion yuan of book value of Eastar Group and other 10 companies applying bankruptcy at the same time, with no more than 100 million yuan of cash.

Eastar Group has been listed in China's Top 500 Private Companies before, with over 28 billion yuan of annual sales, covering such fields as chemical, new energy, biological medicine, new material, real estate development, logistics transportation, bonded warehousing and international trade and its industries spread in such regions as Shandong Province, the United States, Hong Kong and Xinjiang of China.