Lenders fear Chinese insolvencies (China the immune; I think not)

Discussion in 'Economics' started by ByLoSellHi, Mar 4, 2009.

  1. * MARCH 5, 2009


    Lenders fear Chinese insolvencies

    HONG KONG --
    Foreign lenders who rushed into China in recent years are watching nervously as a number of companies there teeter on the brink of insolvency. Their worry: The nation's bankruptcy laws may leave them with virtually nothing.

    Several big Western investors -- Citigroup Inc., hedge-fund manager Citadel Investment Group LLC, Credit Suisse Group and CLSA Capital Partners -- are seeking to get back between $100 million and $200 million in loans extended to a Chinese steelmaker, according to people familiar with the matter. While they might recoup some of the money under a restructuring, a liquidation could wipe ...