A Chinese coal company's use of US bankruptcy law is a positive development that may encourage other mainland firms to use a similar approach, according to one observer.

"You would hope that other Chinese companies would explore this path," Drew Bernstein, a co-managing partner at Marcum Bernstein & Pinchuk, a New York accounting and advisory firm, said in an interview. He has worked on bankruptcy cases in China and the US.

"The company deserves a lot of credit," continued Bernstein. "They worked out this plan with their bondholders instead of just walking away, which happens with a lot of Chinese companies."

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