Fibrechem Technologies (Suspended)

[freedom]

1. although loan can be written down by then banks, it does not mean the company does not need to pay the banks. Unless the banks discharge the liability from the company, the company is always liable to repay the loan.

2. oversea investor might have difficulty to recover their investment, it would be a totally different case for domestic fraud. farmers, villagers can sue them and the court can seize the assets if convicted.

1. I am not good with corporate structures so I do not know much. But if the company is essentially bankrupt and has zero links found to the new entity formed the company directors, the bank can also do nothing right? For e.g., the company can sell its assets to the other entity at $1 and making it an empty shell. At most, one of the directors (maybe a farmer) would have to be made a scapegoat and be jailed or whatever. Is this possible?

2. China and like many emerging countries have bullied these farmers and villagers legally and non-legally. Some of these farmers do not have the title deeds or own the land but because they reside in the land and have plantation, they claim ownership but would run away at the immediate sight of military force (Indonesia Suharto era). This may be more difficult nowadays with the Wukan riot as an example.

for 1, normally, for SPVs or certain subsidiaries, banks will ask the corporate parent for guarantee of the loan.

for 2, sadly, it is very true in a lot of countries.