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Article: CHINA APPROVES DEBT FOR EQUITY SWAP FOR 600 ENTERPRISES.
- Article from:
- AsiaPulse News
- Article date:
- March 22, 2000
CopyrightCOPYRIGHT 2000 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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BEIJING, March 22 Asia Pulse - China's State Economic and Trade Commission has published a list of 600 enterprises that have been recommended for swapping debt for equity, involving about 400-500 billion yuan.
In the list are 77 enterprises in the machine-building industry, involving a total of 43.9 billion yuan or accounting for 30.78% of the long-term liabilities of the industry, which were 142.6 billion yuan in 1998.
The move will cut their average asset/liability ratio by 16.85 percentage points from 69.86% to 53.01% and reduce financial expenses by 2.8 billion yuan. The enterprises are expected to make profits the very year the deal is clinched.
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