China's central bank calls on struggling companies to restructure debt outside courts - Yahoo Finance

Chinese regulators are urging struggling corporate bond issuers to seek voluntary debt restructuring in talks with their bondholders as a way to avoid default, as regulators last week issued new rules that seek to enforce investors’ protection amid rising defaults.

In building a more uniform, transparent approach for corporate bond issuers to handle a default, the People’s Bank of China has called for more debt restructuring, a practice that has long existed in other markets but is still relatively new in China.

The notice, jointly issued with the China Securities and Regulatory Commission and the National Development and Reform Commission, also includes the role that bond trustees should play in pursuing claims on behalf of