China Resources International, a former leading miner and processor of raw materials will be forced to file for Chapter 10 bankruptcy under the Enterprise Bankruptcy Law of 2007 in the Chinese Bankruptcy court for the Shanghai district. The company will be forced to liquidate its assets under the jurisdiction of the Bankruptcy court and in accordance with the applicable provisions of the Bankruptcy Law and the orders of the court.

China Resources International was not able to raise sufficient capital as an alternative to pursuing bankruptcy, neither was China Resources International able to agree on terms with a committee of senior debt holders in order to restructure its debt. As of July 29th, 2014 the company retains outstanding debt of over US$400 million.

This outstanding debt was attributed primarily to under producing mines in the Guizhou region of China. Although initial surveys predicted dense gold deposits, these mines were ultimately underproductive. The company invested over $350 million into the project, from which it saw returns of only US$10 million. China Resources International’s other licensees in the Guizhou region also failed to produce sufficient raw minerals to be profitable.

With the filing of the bankruptcy, China Resources International is also pursuing an order to restrict transfers of equity interests in claims against the company. The company is filing this order to preserve the company´s net operating losses of $600 million.