Cultural differences divide creditors and Asian debtors; Prachai's Thai Petrochemical Industry illustrates how hard it can be to foreclose after default
Article Abstract:
The troubled relations between Thai Petrochemical Industry PCL (TPI) and its foreign creditors can be attributed to serious cultural differences. Western financial institutions believe that Prachai Leophairatana, owner of TPI, is out of touch with the reality that anyone who cannot pay their loans must forfeit their companies. Prachai counters that bankruptcy laws are foreign concepts which are unfair to debtors since they allow mere service providers to take property away from their rightful owners. TPI is seen as a bellwether for Thai corporate restructuring, while Thailand is supposed to lead restructuring efforts in Asia.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Waiting out the turbulence: business binds the ethnic Chinese to Indonesia
Article Abstract:
Some Chinese companies are raring to return to troubled Indonesia after they were forced to evacuate in fear of their lives as the country suffered rioting and looting aimed at the affluent tycoons and at former President Suharto. The Chinese' business in Indonesia binds them to the country. Indeed, few of the country's ethnic Chinese-controlled firms have been able to diversify much out of Indonesia. This is welcome news for Indonesia, which is already feeling the pain of the Chinese firms' absence.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Investor's plight illustrates the Asian loan-recovery mess: murky bankruptcy laws put many of the region's debtors, not creditors, in the driver's seat
Article Abstract:
The absence of tangible bankruptcy laws in Asia skews the law in favor of the debtors as in the case of PT Sierad Produce. The company failed to live up to its commitments but the law allows companies to maximize their options leaving creditors at the mercy of debtor decisions. Yield hungry investors have continually invested in Asian firms but the experience of some creditors shows that there may be a downside to lending to Asian firms.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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