in the event of a default
I kinda think that
the winners are
1) management
2) the bond holders
Likely Singapore shareholders are gonna get wiped out... the evils of s-chips
(05-02-2014, 10:05 PM)GPD Wrote: [ -> ] (05-02-2014, 09:57 PM)felixleong Wrote: [ -> ]in the event of a default
I kinda think that
the winners are
1) management
2) the bond holders
Likely Singapore shareholders are gonna get wiped out... the evils of s-chips
Why bondholders as well?
my gut feel tells me that management and SHK are out to take advantage of shareholders.
SHK very shrewd and experienced, I don't think they fell for the trap. But instead they could be involved in laying this "trap"
In an event of default or liquidation, as bondholders SHK will have priority over common stock holders. So its likely that they recover all their $$, maybe plus something extra? hm....
defaulting and then liquidating the company would be great for the corrupted management, a perfect exit plan.
Better to scoop everything now and leave than keep riding the tiger. They know they can't cook their books forever, it must end someway or another.
If they wanted to continue riding the tiger, they would had suck more out of shareholders.. do rights issue blah blah blah (give me $$ give me $$)
Anyway the above analysis is just my imagination/speculation. (I may likely to be very wrong)
If someone borrows at a high interest rate, either he is desperate or that he does not intend to return the loan in the first place. Seems like it is the latter......
Even if it's not fake. The way the business is conducted isn't prudent at all.
Receivables is just way too high. No one runs businesses by letting their customers owe them so much money. And it was only 12 distributors!
Singaporean taken for a ride again by S chips. Why is SGX so reticent about such crime? I cannot remember of any serious prosecution or act to pursue such prosecution in china.
Every dollar lost to such fraud means less money in our economy. Its economy calamity awaiting 2016! Many equity investor had suffered, when will justice be served?
election day! change of new government? lol
(08-02-2014, 06:30 AM)ValueBeliever Wrote: [ -> ]Singaporean taken for a ride again by S chips. Why is SGX so reticent about such crime? I cannot remember of any serious prosecution or act to pursue such prosecution in china.
Every dollar lost to such fraud means less money in our economy. Its economy calamity awaiting 2016! Many equity investor had suffered, when will justice be served?
They are foreigners from big country.