Financially troubled Rongsheng pushed into restructuring

The group had suspended its shares last month and flagged that a potential announcement relating to restructuring was imminent.Over the weekend, made a further announcement that it had been "notified by a government authority that they are procuring an independent third party to consider and, if appropriate, to initiate a potential restructuring involving Jiangsu Rongsheng Heavy Industries".

Jiangsu Rongsheng Heavy Industries is Rongsheng's main unit and derived some 89% and 91.4% of total revenue for FY2013 and the first half of this year respectively, from it. In the first half of 2014 Rongsheng reported a loss of $498.1m.

Rongsheng added: "The company does not currently possess any confirmed details on the potential restructuring, which might involve a restructuring of assets, business, debt and/or equity and might involve a dilution of its equity interest attributable to the group (which might or might not also affect whether Jiangsu Rongsheng Heavy Industries continues to be a subsidiary of the group)."

The company said it would update with any more information as it becomes available and shares would remain suspended until further notice.