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China debt crunch

China's struggling Tianqi Lithium seals deal to extend loans

Chairman pledges $620m in shares to win breathing space from creditors

Tianqi Lithium still owes $3.08 billion from its purchase of a large stake in Chile's SQM. Chile has the world's largest lithium reserves. (Photo by Nozomu Ogawa)

HONG KONG -- China's struggling Tianqi Lithium has secured two years' breathing room on some $3.08 billion in debt owed on its purchase of a large stake in a Chilean miner as part of an aggressive global buying spree.

To secure the debt rollover, Chairman Jiang Weiping and his family have had to pledge more than 100 million of their shares in the company as collateral, according to Tianqi's filing late Monday to the Shenzhen Stock Exchange.

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