It was the end of September, and Renova Solutions was making headlines as a company in the throes of a new loan that could turn a profit.
After paying off a loan of nearly $500,000 last year, the firm is trying to refinance a $5.5 million loan.
But it is facing a slew of challenges: It owes money on the $50 million loan and the $20 million loan it secured from a Chinese company in 2011, and it is still owed on a $25 million loan to the state.
In January, the company reached an agreement with the state to pay a portion of the $15 million in debt.
The deal, which would allow the company to refloat the remaining debt, could save the company millions of dollars.
The loan that was the centerpiece of the company’s restructuring plan, known as a loan modification, was issued in 2012 and included a 30-year term, allowing the company, which was founded in 2013, to reflue debt at a lower rate than the 30- and 35-year terms, which are common in the Chinese government’s loan modification programs.
The $5 billion in debt was due to be repaid in 2026, but the government has yet to pay it off.
The company says the $5 million in loan modification was approved in April and it will be repaid with interest.
In a statement, the government said it was disappointed to learn of the loan modification agreement.
It said it has always approved loans on the basis of the merits of the borrower.
The government said the $30 million in new loans issued to the company in March are now due.
“In the course of the process, we found a large and outstanding amount of debt,” a government official said in a statement.
The news comes just a week after the state of North Korea announced that it had successfully restructured its $50 billion loan program, which is intended to spur economic growth.
That program was criticized for not taking into account the effects of the collapse of the country’s economy.
The U.S. Treasury Department said it found that North Korea has been “banking with less cash than it would need to service the outstanding debt and was unable to meet its obligations under its loans.”
The country is also grappling with a chronic shortage of food, which has led to a severe food shortage.
The new state-backed loan, which Renova is hoping to refranchise with the government, is expected to allow the firm to reflow debt, according to the official statement.
A spokesperson for Renova declined to comment on the news.
The Chinese company, the Renova Group, had agreed to finance the $3.8 billion loan to cover the debt, but it has been struggling to repay it.
The state-controlled bank has warned it may take up to $500 million in legal fees and additional legal costs if the company fails to repay the loan, according in a letter to the U.K. news website The Times.
The latest announcement comes as the U-turn on the restructuring program comes as a new report from the Government Accountability Office found that the U