Red Ponzi Cracking: Default Of State Giant Tewoo Is A Game-Changer

Last Wednesday, Tewoo Group announced results of its “unprecedented” debt restructuring, which saw a majority of its investors accepting heavy losses, and which according to rating agencies qualifies as an event of default. As a result of the default, until recently seen as virtually impossible for a state-owned company, investors’ perceptions are undergoing a dramatic U-turn about government-owned borrowers whose state-ownership had for years offered an ironclad sense of security.

www.zerohedge.com/markets/chinas-moment-reckoning-arrives-38bn-state-owned-giant-announces-largest-dollar-bond