China Shanshui has defaulted on a CNY1.8bn three-year bond carrying an annual interest rate of 5.4 per cent that matured on Thursday, the South China Morning Post reports.

The development has pushed China Shanshui, closer to bankruptcy, as its earlier debt default triggered multiple lawsuits from creditors that have already seen some of its assets frozen or put into impending auctioning.

"The underlying cause of Shandong Shanshui's debt problems is unresolved disputes over shareholders' control, which restricted its fundraising channels," Shandong Shanshui said in a statement posted Thursday on chinabond.com.cn, the main platform for mainland bonds issuers' information disclosure.

Since the estimated value of the company's assets far exceeds its debt, it expects court-ordered assets sales to bring in less proceeds than claims made by creditors, it added.

In November Shandong Shanshui defaulted on a CNY2bn debenture as a fight for control prevented the firm from obtaining the financing it needed.