Shenzhen Nanshan Refuses Goldman Demand for Payment

(Bloomberg) — Shenzhen Nanshan Power Co., a utility based in the southern Chinese city, said it refused demands by a Goldman Sachs Group Inc. unit to pay $80 million for alleged default on oil-hedging contracts.

Shenzhen Nanshan and Goldman Sachs disagreed on the cause for terminating the contracts in December 2008 and it remains to be determined which party should incur the trading losses, the Chinese firm said in a stock exchange statement today. Shenzhen Nanshan said that while negotiations with Goldman Sachs

Shenzhen Nanshan is among 68 Chinese state-controlled companies including China Eastern Air Holding Co. and China National Aviation Holding Co. that lost money on derivative products sold by banks including Goldman Sachs, Morgan Stanley, Merrill Lynch & Co. and Citigroup Inc., according to the State- owned Assets Supervision and Administration Commission.