Court: China Shanshui Cement directors cannot apply for winding up

By Caroline Salls

Pittsburgh, Nov. 24 – China Shanshui Cement Group Ltd.’s directors do not have the authority to submit an application for a winding up of the company, according to a ruling by the Grand Court of the Cayman Islands.

The company said in a news release that the winding-up petition submitted by the directors will be struck out if no creditor submits a successful application to be substituted as the petitioner.

A further hearing on the matter is scheduled for Nov. 25.

As previously reported, China Shanshui Cement’s board of directors filed a winding-up petition and an application for appointment of joint provisional liquidators earlier this month.

According to a Nov. 11 release, the board concluded that the group would be unable to obtain sufficient financing by Nov. 12 to repay its onshore debt, meaning it would default on that date.

The board said the default on its onshore debt would trigger cross default provisions of other financial facilities entered into by the group, including its 2020 notes and other loans or guarantees entered into in the People’s Republic of China.

As a result, the board filed the winding-up petition.

The cement manufacturing company is based in Jinan, China.

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