Haxion undergoes bankruptcy, which is to be followed by other Chinese steel mills

BEIJING (Scrap Monster): The company, located in Wenxi Shanxi province, had already sent their application regarding the reorganization to the Yuncheng City Intermediate People’s Court. A statement was posted in the chinacourt.org; a site owned by the government that present the viewers with the list of legal proceedings, the court has accepted the application sent by the company. The statement also asserted that, the creditors who  wants to claim their rights should do it before the 22^nd  February.

The slowing economy of China, and the government’s halt on the steel industry in a mission to avoid air pollution and the over capacity of steel, are driving the steel manufacturers in the country out of their mind. Xu Xiangchun,  a researcher as well as the Chief analyst, of MySteel.com declared that, the bankruptcy of Haxion Iron and Steel  group, will be followed by other steel makers of the country.

He also expressed that, the government is taking up efforts for reorganizing the bankrupted steel mills, this will become a phenomenon, leading to more number of steel mills to court in order  to protect the creditors.