Beijing-based General Steel Holdings Inc. (NYSE: GSI) announced a $1 billion loss, as the company works to restructure after a decline in the selling price of steel left it with more liabilities than assets.

General Steel operates primarily as a producer of steel but also designs, manufactures and integrates radio-frequency identification systems, which provide real-time data on supplies, inventory and goods.

Demand for steel in China has plummeted, and the metal is at its lowest price in 20 years.

“Our steel business has faced very tough market conditions and challenging profitability over the last several years, and based on current trends, we think the near-term challenges for the steel sector will likely linger,” the company says in an Aug. 19 filing with the U.S. Securities and Exchange Commission. “In reaction to this challenging market, we are proactively reviewing our strategy and asset portfolio and seeking to restructure low-efficient, non-core assets.”

General Steel announced a 10.1 percent sales decline year-over-year for the second quarter, bringing in $528.8 million compared with $588 million. The business also experienced a $64.3 million gross loss for the second quarter, compared with a gross profit of $28.1 million for the second quarter of 2014.

General Steel says the sales decrease is caused by a decline in the average selling price of rebar steel, and was offset by larger sales volume. 

The company’s liabilities exceed assets by $1.5 billion, which coupled with losses, raises substantial doubt about General Steel’s ability to continue as a going concern, or without the threat of liquidation, the company says in an SEC filing.

For more on how economic concerns about China are affecting middle-market deals, see M&A in 2015 Lags 2014, After Sluggish July and Dealmakers Say the Middle Market Remains Safe From Stock Market Plunge, For Now

For the previous edition of Turnaround Tuesday, see American Apparel Expresses Self Doubt in SEC Filing, as Cash Dwindles. For a list of other struggling companies, see Mergers & Acquisitions Distressed Company Watch List

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