(Bloomberg) -- China Minsheng Investment Group will cut compensation of its top and mid-level executives from this month to support strategic restructuring, it said in an announcement.
The Shanghai-based company that aspired to become China's answer to JPMorgan Chase & Co. said on Tuesday it will reduce salaries for senior and mid-level management by as much as 83% to lower costs. Average cuts for senior and mid-level management will be 53% while ordinary employee pay will remain unchanged, it said.
The latest plan comes a day after the company laid out plans for a repayment arrangement of its dollar bond that was due in August this year. It plans to use funds raised from its asset disposals which it expects to receive in the first-quarter of next year.
CMIG's debt repayment difficulties became apparent earlier this year after it missed payment on a yuan bond. Since then it has managed to repay some of its local bonds with a delay. In July, it said that it won't be able to repay the $500 million bond which was due the next month and that it was in discussions regarding possible disposals of certain offshore assets to improve the group's current liquidity situation.
China Minsheng said in July that it sold its 100% stake in a Tianjin-based unit to Wu Po Sum, chairman of Central China Real Estate for 1.65b yuan ($233.6 million).
READ: China's CMIG, Another Giant Firm Dicing With Default: QuickTake
--With assistance from Tongjian Dong.
To contact the reporters on this story: Neha D'silva in Hong Kong at ndsilva1@bloomberg.net;Rebecca Choong Wilkins in Hong Kong at rchoongwilki@bloomberg.net
To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, Gregory Turk, Chan Tien Hin
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