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GITIC Wins Creditors' Approval for First Payout
Creditors approved plans Tuesday for a first payout from the liquidation of bankrupt Guangdong International Trust and Investment Corp. (GITIC), who went bankrupt two years ago with debts totaling about 2.54 billion US dollars.
The proposed payout to GITIC's creditors amounts to 3.54 percent of claims accepted by the company's liquidation committee, or 733 million yuan (88.3 million US dollars), according to the third creditors' meeting held on October 31.
The third creditors' meeting was chaired by representatives from Hang Seng Bank of Hong Kong, and was attended by 159 creditors, including 70 overseas creditors.
GITIC, the investment arm of the Guangdong provincial government, closed down in October 1998 after defaulting on some 2. 54 billion US dollars in debts owing to foreign and domestic institutions.
The company and three subsidiaries went into liquidation in January last year after the central government refused to bail them out.
The liquidation committee accepted claims from 215 creditors totaling 20.7 billion yuan (2.49 billion US dollars).
According to current liquidation plans, creditors will eventually be able to recover 34 percent of claims accepted by the liquidation committee.
The payout plans will be carried out after they are given approval by Chinese courts.
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