Shansui Cement management in turmoil

China Shanshui Cement Group, which last month defaulted on a CNY2bn bond and saw its entire board ousted early this month, says it has reported the loss of key documents, data and company stamps to Hong Kong Policy as management of the company was plunged into further turmoil.

Meanwhile its Shandong unit warned it may default on another CNY1.8bn (US$277m) bond due to mature on January 21.

The development suggested that the seven-month battle for control over the company has escalated as the original board directors and senior managers have refused to cooperate with the new board.

It also raises concern that the company's new board, led by its largest shareholder Tianrui Group - parent of Hong Kong-listed rival China Tianrui Group Cement - may have difficulty managing some aspects of its operations without the allegedly stolen company assets.