HITIC of China defaults on 28.5 Billion Yen in "Samuri" Bonds

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Chinese nonbank firm defaults on 'samurai' bonds Source: Kyodo News Service/Associated Press Publication date: 2000-10-16

TOKYO, Oct. 16 (Kyodo) -- Hainan International Trust & Investment Corp. (HITIC) of China has defaulted on interest payments to holders of two "samurai" bonds falling due on Sept. 25, financial industry officials said Monday. Failure to pay within a grace period of two weeks means that the loans are in default, the officials said.

HITIC is the first nonbank financial institution under the Chinese government's direct supervision to default on samurai bonds or yen-denominated bonds issued by foreign governments or companies.

The bonds in question were issued by HITIC in 1994 and 1997 for a combined amount of 28.5 billion yen.

Sumitomo Bank, Shinsei Bank and six other trustees will hold talks with HITIC on how to deal with the loans.

Copyright 2000 by Kyodo News Service All Rights Reserved

The information contained in the KNI news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press as agent for Kyodo News Service.

http://cnniw.yellowbrix.com/pages/cnniw/Story.nsp?story_id=14845989&ID=cnniw&scategory=Banking%3ACommercial

-- Carl Jenkins (Somewherepress@aol.com), October 17, 2000


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