Defaulted State-owned Dongbei Special Steel Group Co filed a restructuring plan to the Dalian Intermediate People's Court on Monday.
A private and a State-owned enterprise are expected to take part in the restructuring process of the failed State-owned enterprise, through which Dongbei Special Steel will push forward plans for mixed-ownership, according to the Xinhua News Agency.
Based in Dalian, Northeast China's Liaoning Province, the company has been facing mounting debt and started to default on its corporate bonds last March, Xinhua noted.
China's Jiangsu Shagang Co Ltd said on Monday that it is expected to be the biggest shareholder of debt-strapped Dongbei Special Steel Group after a bankruptcy restructuring process, according to Reuters.
Meanwhile, State-owned Bengang Steel Plates Co Ltd said on Monday it plans to invest 1.04 billion yuan ($152.88 million) in Dongbei, and this would account for 10 percent of Dongbei's registered assets after the restructuring process, Reuters noted.
