China Cinda Asset Management's drive to crank profit out of bad loans has come at a cost - a debt mountain of its own. As it homes in on Hong Kong's biggest initial public offering this year, the distressed debt manager's borrowing has risen twenty-fold in the last three years to more than its maximum market value at listing. The surge to 104.1 billion yuan ($17 billion) in debt at the end of June came as Cinda went on a spree, scooping up distressed assets from the likes of real estate projects, cement makers, miners and coal companies unable to pay back loans. The debt pile, revealed for the first time in Cinda's IPO prospectus, doesn't just expose the company to risk factors including short- and long-term interest rate hikes.
via Business News - Yahoo Finance http://finance.yahoo.com/news/chinese-bad-loan-manager-cinda-210237385.html
0 commentaires:
Enregistrer un commentaire