SINGAPORE/BEIJING—The government of the Chinese city of Tianjin, the only shareholder of bankrupt Bohai Steel Group Ltd., is demanding that Bohai’s creditors and strategic investor implement a bankruptcy restructuring plan by the end of September, two creditor sources with direct knowledge of the matter said.
The Tianjin government is keen to take action before the 70th anniversary of the founding of the People’s Republic of China on Oct. 1, both sources said, a major event for China’s ruling Communist Party. As a result, a timely reorganization is now considered a “political task,” they said.
