Perwaja bailout's hefty price

Article Abstract:

State-owned steel company Perwaja Terengganu Sdn. Bhd.'s financial burdens would have a significant impact to the Malaysian economy and to the administration of Prime Minister Mahathir Mohamad. The steelmaker was created in the 1980s as part of Mahathir's industrialization program. At present, the company carries 2.96 billion ringgit in accumulated losses and 6.94 billion in net liabilities. The government's investment in the company amounts to 2.07 billion ringgit. A rescue plan prepared by economists and finance ministers proposes the acquisition of 70% interest of the company under a privatization plan. However, critics say it would take more than privatization to recoup the losses incurred by the company.

Iron and Steel Mills, Blast furnaces and steel mills, Raw Steel, Finance

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Lion holds back on plan by Malaysia to aid Perwaja

Article Abstract:

Malaysia's top private steel company Lion Group has yet to indicate its participation in a government-proposed consortium to bail out debt-laden steelmaker Perwaja Terengganu Sdn. Bhd. Eventually, the government may end up holding 49% of the rescue consortium and may be forced to absorb a large amount of Perwaja's $2.81 billion in liabilities. As such, financial bankers are currently organizing financial plans to save Perwaja.

Mortgage and Nonmortgage Loan Brokers, Loan brokers, Loan Syndicators, Management, Economic aspects, Mortgage banks, Syndicates (Finance), Lion Corporation Bhd.

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