China's largest private investment fund is on the verge of bankruptcy


China's largest private investment fund, China Minsheng Investment Group, was on the verge of bankruptcy, Bloomberg reported. The Chinese financial sector is experiencing a non-payment crisis - in 2018 overdue payments reached 120 billion yuan. CMIG Investment Fund urgently needs to pay $800 million to Eurobond holders after it failed to redeem bonds worth 3 billion yuan back in February. The fund, the assets of which amount to $45.5 billion, does not seem to have the means to pay the debt in excess of $35 billion. The Hong Kong Stock Exchange received a notice from the fund stating that it hired lawyers from Kirkland & Ellis. This message, in conjunction with the fact that banks have assembled a committee of creditors, speaks of the approaching bankruptcy of the fund with the exchange of debt for shares.

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