investment vehicle of Zhuhai municipal government was one the verge of collapse in late
July after banks rejected an 'insulting' offer to restructure USS576m in debts, said South
Chino Moeniug Post. Zhu Kwan Group had reported liabilities of USS8l3m, of which
USS576m is owed to 28 banks, most of which are based in Hong Kong.
Guangdong-based company has 37 companies on the mainland and 13 in Hong Kong
and Macau, including hotels, high-ways and bridges. Few of these units gener-ate major
cash flow, according to the report. and so the company was unable to repay the
Zhuhai firm near collapse, says report