A bankruptcy creditor meeting for Dongbei Special Steel was held Thursday as the company's restructuring process proceeds smoothly.

The state-owned steelmaker, headquartered in Dalian in northeast China's Liaoning Province, has defaulted on corporate debts nine consecutive times, with debts of several billion yuan.

The company entered bankruptcy restructuring on Oct. 10. The declaration of credits concluded while processes such as debt recognition and appraisal of properties and funds are under way.

The meeting was held by Dalian Intermediate People's Court and attended by 374 creditors.

The court agreed that the company could continue to operate and take charge of its own assets and business under supervision during the restructuring period. Production and operation of the company are proceeding as usual.

Under the downward pressure, China's steel sector, already burdened by overcapacity, has been especially hurt by shrinking demand.