Thursday, 13 November 2008

FerroChina appoints business recovery firm

1 comment:

Guanyu said...

FerroChina says that Ernst & Young Solutions has decided to step down as its financial adviser after producing a restructuring plan for the group. FerroChina has therefore engaged KordaMenthaNeo, a corporate recovery and restructuring firm, to help negotiate with creditors and develop solutions to resume operations. The Chinese steelmaker said that it has also received notifications of an additional 37 law suits from creditors of its subsidiaries, bringing the deluge of suits to 206 with claims amounting to 4.82 billion yuan (S$1.06 billion). Some of these creditors have applied for reorganisation of the subsidiaries under China's bankruptcy law. All the subsidiaries have received reorganisation notices and have seven days to respond to them. One of the notices says that the petitioning creditors believe that Changshu Xingdao Advanced Building Material Co should be able to resume production and generate cash to repay debts if it is reorganised.