Bankruptcy of GITIC
," Fitch IBCA, January 11, 1999.
Louie Choi, a partner at KPMG Huazhen who leads the GITIC
liquidation group, said 159 creditors attending a third creditor meeting Tuesday in Guangzhou unanimously approved the repayment proposal put forward by the liquidators.
was closed down by the People's Bank of China, China's central bank, in early October last year following the company's failure to repay maturing debt, Japanese bankers have been demanding 100% repayment of loans.
As Vice Premier Zhu Rongji has indicated China does not want to see any more Chinese enterprises liquidated after GITIC
, restructuring will become the likely option to rescue insolvent firms in the future, Mok said.
The "lawful, reasonable and fair" decision to allow GITIC
to go under was an individual case in the course of China's financial reform, Zhu told a press conference.
At least nine Japanese banks with branches in Hong Kong have written to Dai and the governor of Guangdong Province seeking full repayment of their loans to GITIC
Dai said that although a central bank liquidation group stated initially that registered foreign debt would be repaid first, three months of investigations have shown the GITIC
losses are ''much higher than we expected.
Tsang Yok-sing, CPPCC member and head of the Democratic Alliance for the Betterment of Hong Kong, said in a statement received in Hong Kong that he told the CPPCC meeting the bankruptcy of GITIC
has widely affected China and Hong Kong.