China's Dongbei Special Steel has entered bankruptcy restructuring process as a court accepted the bankruptcy reorganization application from its supplier and creditor on Monday.

According to the court in the northeastern city of Dalian, the 111-year-old Dongbei Special Steel Group has defaulted on corporate debts for nine consecutive times, with the debts amounting to several billion yuan, triggering the bankruptcy and restructuring proceedings filed by Jinzhen Smelting Co. in Inner Mongolia.

Li Jianguo, deputy secretary-general of Liaoning provincial government, said the bankruptcy restructuring is a key step toward the rebirth of the company and demonstrates that the handling of corporate debt defaults have gradually become market-oriented based on the rule of law.

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