State-controlled Chinese potash producer Qinghai Salt Lake Industry (QHSL) has completed its court ordered restructuring and repaid its debts.
QHSL had to repay debts in various ways, including cash and stock options, according to the restructuring plan.
QHSL is one of the world's biggest potash producers, with MOP output of 5.63mn t in 2019. It entered the restructuring process on 30 September after it was unable to pay all its debts following steep losses in its magnesium and other chemical businesses.
Creditors with debts below 500,000 yuan ($70,600) were repaid in cash. The non-bank creditors with debts above Yn500,000 could get paid either with cash or in QHSL stock.
The company increased its capital stocks using reserves.
The restructuring plan was issued on 18 January and approved by local courts on 21 January. QHSL was required to update the public on progress every week. It announced this week the process had been completed.
QHSL also issued its latest market operation plan. The company will focus on premium MOP sectors, supplemented by its high-quality lithium carbonate business.
The company in January sold a bulk of its loss-making assets and some shares to Qinghai Huixin Asset Management at Yn3bn ($423.5mn). This included the assets of its chemical businesses, Qinghai Salt Lake Magnesium Industry and Qinghai Salt Lake Haina Chemical, that had resulted in company losses in the latest three years. Qinghai Huixin is managed by the local government. QSHL used the cash that it received from Qinghai Huixin to repay creditors.
