China’s largest private steel maker has failed to repay a 3 billion yuan ($3.75 billion) debt, which means yet another high-profile company in China will likely face bankruptcy.

According to the 21st Century Business Herald, "Highsee Group's 3 billion yuan debt was overdue last week. The company is running in red, and has failed to pay workers for months. Many of its furnaces have stopped operating." The news comes on the heels of a sharp decrease in domestic steel prices in March, a drop that has brought those prices to their lowest level in more than eight years.

The low numbers are the result of both an increase in output and a decreased demand for steel, The Standard reports.

Highsee Iron and Steel Group Co., Ltd., which is based in Shanxi, China, is just one of numerous steel mills facing issues in the country. Data from the National Bureau of Statistics revealed that China produced 2.22 million tonnes of crude steel a day over the first two months of 2014, Reuters reports. This record amount was manufactured even though demand wasn’t as strong.

Shanxi coal miner Liansheng Resources Group recently went bankrupt as well. But its loans are expected to likely be bailed out. UBS Securities analyst Chen Li warns that more defaults are possible among companies, since it is the peak season for corporate debt dues.

Like Highsee Group, developer Zhejiang Xingrun Real Estate in Ningbo was said to be on the verge of collapse this week. The company reportedly holds a debt of 3.5 billion yuan.