Gitic's closure boosts fears
Article Abstract:
Apprehension over China's ailing financial system further intensified following the closure of the country's second largest trust and investment company, Guangdong International Trust and Investment Corp (Gitic). The closure, announced on Oct 6, 1998, was initiated as a result of the company's failure to settle its debt obligations, including $500 million-worth of short term loans. Company officials are optimistic that only a few of Gitic's clients would incur massive loses, since all of its liabilities would be turned over to Bank of China, the country's industry leader.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Gitic's liquidation process is foreign to many lenders: case is eye-opener for overseas creditors still in the dark about asset prices
Article Abstract:
The manner in which the Chinese government liquidated the assets of Guangdong International Trust and Investment Corp (Gitic) illustrates the lack of transparency in the implementation of China's bankruptcy law. The event has caused concern among investors and foreign creditors. Formerly, foreign creditors were simply told that they were going to be reimbursed for their loans or investments. China's bankruptcy law stipulates that creditors can discuss and approve the distribution of assets but it is silent on how the price of assets are to be determined.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1999
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Gitic's closure boosts fears
Article Abstract:
The sudden shutdown of Guangdong International Trust & Investment Corp. (Gitic), the largest nonbank financial institution in China, has raised concerns about the country's financial system. The concerns were intensified because the Chinese government had promised to back up the firm's $2.4 billion in outstanding liabilities. Gitic was closed on October 6, 1998 because of its failure to fulfill maturing debt obligations.
Comment:
Sudden shutdown of co in October 1998 raises concerns about China's financial system
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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