ST Tongde (002360.SZ) disclosed in an announcement on 7 October that as of 29 September, the company and its wholly owned subsidiary Tongde Sci-Tech had total overdue debt principal and interest of 829 million yuan, including overdue principal of 778 million yuan and interest of 51.5628 million yuan, with the overdue principal accounting for 85.62% of audited net assets at the end of 2025. A company source told China Business Journal that the company has now entered a critical stage of pre-reorganisation, relevant agreements have been signed, all application materials have been completed and submitted, and the matter is currently in the court's initial review process. The overdue debt began with a first default of 30.8209 million yuan in principal in April 2025, the first interest arrears appeared at the end of May 2025, overdue principal exceeded 300 million yuan at the end of November, and since 2026 multiple banks, financial leasing firms and other financial creditors have successively initiated litigation and asset preservation procedures. In April 2026, a creditor applied for pre-reorganisation on the grounds that the company was unable to repay maturing debts but its core civil explosives assets had reorganisation value. The Intermediate People's Court of Xinzhou, Shanxi Province accepted the pre-reorganisation filing and registration in accordance with the law and publicly recruited reorganisation investors. In July 2026, the court ruled to extend the pre-reorganisation period to 20 October. The company said current production and operating order is generally normal, with no work stoppages or production halts, and it plans to adjust assets, liabilities, personnel structure, share capital and business through judicial reorganisation.
Shanxi Tond Chemical Co LtdCompany and subsidiary have 829 million yuan of overdue debt principal and interest, with overdue principal at 85.62% of net assets, triggering creditor litigation and pre-reorganisation proceedings.
