Unsecured creditors from across the cotton industry are being warned to expect to be repaid maybe just a fifth of their losses following the collapse of Chinese-owned merchant Weilin Trade owing about $58 million.
Latest estimates suggest about 195 cotton growers, brokers, merchants and other service providers have lost money after Weilin bought cotton for the 2019-20 and 2020-21 seasons for as much as $660 a bale – or typically about $15 to $30 above mainstream market prices.
However, its contracts were not honoured by buyers or shareholders in China after coronavirus triggered a demand slump in February-March.
A big portion of Weilin’s 2020 crop purchases had to be re-sold into a depressed July market for significantly less than $5…
Read the full article at: https://www.farmonline.com.au/story/6862188/chinese-cotton-companys-creditors-may-get-20c-in-the-dollar/
