Caixin OnlineFinance & EconomicsTop Stories Finance Beijing Loan Guarantee Firm Teeters on the Edge
08.14.2012 17:29

Beijing Loan Guarantee Firm Teeters on the Edge

Company named Zhongdan is linked to 22 banks, 294 businesses and loans totaling more than 3 billion yuan
By staff reporter Ma Yuan

(Beijing) – A prominent loan guarantee firm in Beijing will go bankrupt if no restructuring plan can be agreed upon by August 20.

Zhongdan Investment Credit Guarantee Co. Ltd., established in 2003, has been caught in a liquidity crisis since January, when its capital chains reportedly started falling apart. This prompted banks and clients allegedly tricked into depositing their borrowed money with the firm to demand immediate repayment.

We hope you have enjoyed your free articles for the month
REGISTER to get 5 more free articles, or SUBSCRIBE to get full access to Caixin
Already a subscriber? Log in now
Sign up to receive our free daily newsletter