Big China Defaulter Hunts for Cash With $2 Billion Due Next Year
- CMIG is on a mission to free up cash after defaults this year
- Company has $4 billion outstanding in local and offshore bonds
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China Minsheng Investment Group Corp. once sought to be the nation’s version of JPMorgan Chase & Co. Instead it’s the country’s biggest dollar bond defaulter this year. With $2 billion of debt maturing in 2020, the company is scrambling to raise cash. It’s slashed executive pay as much as 83% and is selling assets.
One of the largest private investment companies in China, the group was set up by 59 non-state companies in 2014 with a mandate to help Chinese private enterprise expand globally. The company posted 24.7 billion yuan ($3.5 billion) in revenue in the nine months through September 2018, and had 233 billion yuan in total liabilities at that point, according to a prospectus filing. It hasn’t disclosed financial results since.