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Hey... this fella delisted??!!
as i said before..
can sing auld lang sai liao
question. how long can a stock stay in suspension on SGX?
Noticed that GuangZhaoIFB also suspended for a very long while now....
can sing auld lang sai liao
October 29, 2008, BT
Ferrochina facing RMB4.5b in claims from creditors
SINGAPORE - Insolvent Chinese steelmaker Ferrochina is facing 169 claims on its assets, for a total of RMB4.48 billion (US$657 million), the company said on Wednesday.
Chairman and chief executive officer She Chun Tai said in a statement to the Singapore Exchange that creditors of six of the company's subsidiaries in China have started action in Chinese courts.
Mr She said many of the creditors have already obtained court orders to freeze assets - including plants, machinery, inventory, fixtures and bank accounts - to be seized if court action is successful.
On Oct 9, Ferrochina said it would be forced to default on loans worth 706 million yuan. Other loan facilities and working capital loans totalling over RMB4 billion was also due soon, the company said then. The stock was halted for trading the next day and remains suspended
Subsequent to the Company's announcement of 9 October 2008, the Board of Directors of the
Company would like to update shareholders that the Company has appointed and established 2
management task forces to lead, facilitate and more effectively coordinate the restructuring efforts of
the Group, namely:
(a) a PRC onshore task force headed by our Executive Directors, Messrs Liu Chi Tsung and
Chang Ying Chung, and comprising our senior management personnel, Messrs Yu Rong Hua
and Zhang Shui Wang ("Onshore Task Force"); and
(b) an offshore task force headed by our Chairman and Chief Executive Officer, Mr She Chun Tai,
and our Executive Director, Mr Nelson Fong ("Offshore Task Force").
The Onshore Task Force has begun negotiations with PRC onshore creditors and liaising with local
PRC government for their support for the Company's restructuring efforts, whilst the Offshore Task
Force is also in talks with offshore creditors and potential investors. The Onshore Task Force and
Offshore Task Force will report to the Board and work with the Company's professional advisers on
the restructuring efforts.
The Company has also received notice from some of its creditors that they have appointed
PricewaterhouseCoopers as administrative receivers over the assets and undertakings of the
Company's wholly-owned subsidiary, Superb Team Limited ("Superb Team"), which essentially
comprises its shares in Changshu Everbright Material Technology Co., Ltd. ("Everbright") and
Changshu Changgang Steel Plate Co. Ltd (“Changgang”). The Offshore Task Force is in touch with
the administrative receivers and working with them on the restructuring of Superb Team and its
subsidiaries, Everbright and Changgang.
The Company is further in discussions with the Changshu City government and the creditors of one of
its subsidiaries with a view to resuming partial operations for one of its plants. The Company has also
received feedback from some suppliers that they are prepared to support such operations. Such
discussions, if successful, would allow the Group to resume part of its operations and generate cash
flow to sustain further operations and to repay creditors. The Group's senior management and key
staff are currently in PRC to assure and update employees, customers and suppliers of the
restructuring efforts being undertaken by the Group.
The Company will continue to keep Shareholders updated on any material developments in its
restructuring efforts.
Submitted by She Chun Tai, Chairman and Chief Executive Officer, for and on behalf of the Board on
17 October 2008 to the SGX-ST
Just remember from this episode, do not put all your eggs in 1 basket.
We have heard Warren Buffet use concentrated buying and profits were good. But remember that he is a gurus with good fund managers supporting him as well. We are working people and limited knowledge, so diversification is crucial.
CAO, Minibonds, etc all are good examples that we must spread out our risk.
I read one article that says we should risk only abou 2% for every counter! He said, in anyway, if we put our bank, we'll not get more than 3%, should be contented. Do not aim for big gain by risking too much. Make sense!
I think this counter may got alot of white knight..it business is solid, but becos of heavy borrowing, ,,i still think it wouldn't go down so easily..it still got hope..
dcang's comment abt one month ago... he did his research. Good job! 
dcang84 ( Date: 15-Sep-2008 11:16) Posted:
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Oh yes, and this thing i have to state.
See below how stupid or scheming these analysts are....Ferrochina was borrowing a massive sum at 13.5% interest per annum! Thats more than a car loan and they have the audacity to still issue a buy call in April and August 08. But then, why not, as they can always revise down their estimates and have disclaimers covering them!
Source: www.sgdividends.blogspot.com
We sold all our holdings in March@ $1.34. Made some profit and scrammed. So why did we sell? We relooked at the financials and found something which we felt uncomfortable with. 
They were operating on razor thin margins! Add to that, steel prices and coke which were the raw material input used for their galvanized steel were on the uptrend during that time.
They were also issuing US$55,ooo,ooo notes to refinance a loan during March 2008 and look at the interest payable by Ferrochina. A staggering 13.5% per annum! Thats more than a car loan!
They were operating on razor thin margins! Add to that, steel prices and coke which were the raw material input used for their galvanized steel were on the uptrend during that time.They were also issuing US$55,ooo,ooo notes to refinance a loan during March 2008 and look at the interest payable by Ferrochina. A staggering 13.5% per annum! Thats more than a car loan!
Thats not all. They were also issuing warrants which will potentially be convertible to common shares, thereby diluting existing shareholder's holdings.
Based on the above factors, we decided to unload our stocks as we had this sinking feeling about it.
10 October 2008 - Sell $0.545
15 August 2008-Buy $1.28
28 April 2008- Buy $1.56
19 March 2008- Buy $1.16
3 March 2008- Buy $1.41Source: www.sgdividends.blogspot.com
Frankly, never trust brokerage houses buy calls. Brokerage houses revenue is from commissions and they issue reports to generate commissions...plain and simple as that. Let me ask you. If you are holding a stock, would you initiate a sell call on it before you sell.
Brokerage houses especially those bank backed also have investment banking relations or the banks they are affiliated with want to fight for corporate businesses. Do you think they will write a report unfavourably on the companies? No of cos as then they will not get business. Common sense?
Sadly, when one research house issue a particular call, nearly all the others follow suit, in general speak. Herd Instinct or just safety in numbers.... NEVER FOLLOW ANALYST CALLS.
Some of them are downright fraudulant. Some FT report showed that big traders did the exact opposite of what these analysts suggest in their reports
Those brokerage houses are useless. They often omit the macro events and DON'T ever trust them!!!!
knightrider ( Date: 10-Oct-2008 11:17) Posted:
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This just received from UOBkayhian :-
Come too late. Just like talking after a cannon has been fire !
I remember a couple of weeks ago when some broking firms still write good on this counter ! Wat a lousy piece of shit and crap !!!
Subject: DBS Vickers (Spore) Ferrochina: On the brink of bankruptcy (SELL, downgrade; S$0.545; FRC SP; Price Target : 12-Month: -) Please see PDF fiile attached at the bottom Ferrochina (SELL (Downgrade); S$0.545; Bloomberg Code: FRC SP) On the brink of bankruptcy Price Target : 12-Month: - by: Paul Yong CFA +65 6398 7951
Story: FerroChina announced that it has been unable to repay working capital loans of c. RMB706m that has become due and payable and as a result, further loan notes and facilities of c. RMB2,030 m may become potentially due and payable and some further c. RM2,493m worth of working capital may also become due and payable. In view of these liquidity issues, FerroChina has temporarily ceased its manufacturing operations in Changshu City and as a prudent measure, has requested the Changshu City government to help safeguard and preserve its assets in the PRC. Point: This is disastrous news for FerroChina. The survival of the company and how well it recovers from this predicament (if it can recover at all) is in our opinion, dependent on how swiftly it can bring in new money and/or how quick and accommodating its creditors are when it comes to renegotiating terms. Given that operations have temporarily been ceased and that interest costs will continue to accrue as time goes by, it is crucial for the company to move quickly to either bring in new money or refinance its loans to stave off liquidation and avoid a deepening of the big hole they are in. Relevance: For investors, the decision to suspend the stock until this situation is resolved, which could take weeks or even months to materialise, means that they will not be able to liquidate their holdings at any price. With the future earnings prospects and survival of FerroChina uncertain, we downgrade the stock to a Sell
This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
Avoid companies that have lots of gearing. Now Bank are reluctant to lend money, especially when they see business increased.
Yes, bluechip is the answer during recession which i've reiterated many times in my posts.
Can put some in this kind of stocks. I myself kena here also but just 3k. It is ok, donate to china companies for better future next time.
All the best.
jackjames ( Date: 10-Oct-2008 08:17) Posted:
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To those vested in FC, good luck!!!
FERROCHINA LIMITED
Company Registration Number 35844
(Incorporated in Bermuda)
ANNOUNCEMENT
CLARIFICATION OF TRADING HALT AND BUSINESS UPDATE
The Board of Directors of the Company wishes to provide clarification on the circumstances relating to
its trading halt on 7 October 2008.
Due to the current economic crisis, the Group is unable to repay part of its working capital loans
aggregating approximately RMB706 million which has become due and payable. As a result, further
loan facilities and notes of approximately RMB2,030 million may potentially become due and payable.
There are some other working capital loans of RMB2,493 million which may also become due and
payable. The Company is currently in active negotiations with its financial lenders to explore various
options (including refinancing) to address its repayment obligations. There is however no assurance
that such negotiations or discussions will be successful, in which event, the Group will not have
sufficient cash to satisfy its financial obligations.
In view of the liquidity issues which the Group is currently facing, the Company has temporarily
ceased its manufacturing operations in its factories located in Changshu City, Jiangsu, PRC and
Changshu Riverside Industrial Park, Jiangsu, PRC. The Company is of the view that this temporary
cessation is in the interest of the Group as a whole and expects to review and (if applicable) make
further announcements, as and when developments necessitate. As a prudent measure, the
Company has further requested and Changshu City government has offered to provide any
assistance which the Company may require to help preserve or safeguard its assets in the PRC.
As announced on 16 September 2008, the Company is currently in serious discussions and
negotiations with a potential strategic investor on its investment in the Company. In addition, the
Company is currently engaged in discussions and negotiations with other potential investors who
have expressed an interest to invest in the Company. To date, no term sheet or definitive agreement
has been signed. The Company would like to assure Shareholders that the management is actively
seeking new equity and loan funding to resolve the Group's current situation, but given the weak
capital market and poor economic conditions, there is no assurance that we can be successful in
securing such funding.
Given the above situation, the Company intends to suspend the trading of its shares until it is able to
work out a scheme of arrangement for presentation to creditors and Shareholders for their
consideration. For this purpose, the Company has appointed Rajah & Tann LLP as its legal advisers,
and will also be appointing a suitable financial adviser, to advise the Company on its restructuring.
The Company will continue to keep Shareholders updated on developments as and when appropriate.
Submitted by She Chun Tai, Chairman and Chief Executive Officer, for and on behalf of the Board on
9 October 2008 to the SGX-ST
Company Registration Number 35844
(Incorporated in Bermuda)
ANNOUNCEMENT
CLARIFICATION OF TRADING HALT AND BUSINESS UPDATE
The Board of Directors of the Company wishes to provide clarification on the circumstances relating to
its trading halt on 7 October 2008.
Due to the current economic crisis, the Group is unable to repay part of its working capital loans
aggregating approximately RMB706 million which has become due and payable. As a result, further
loan facilities and notes of approximately RMB2,030 million may potentially become due and payable.
There are some other working capital loans of RMB2,493 million which may also become due and
payable. The Company is currently in active negotiations with its financial lenders to explore various
options (including refinancing) to address its repayment obligations. There is however no assurance
that such negotiations or discussions will be successful, in which event, the Group will not have
sufficient cash to satisfy its financial obligations.
In view of the liquidity issues which the Group is currently facing, the Company has temporarily
ceased its manufacturing operations in its factories located in Changshu City, Jiangsu, PRC and
Changshu Riverside Industrial Park, Jiangsu, PRC. The Company is of the view that this temporary
cessation is in the interest of the Group as a whole and expects to review and (if applicable) make
further announcements, as and when developments necessitate. As a prudent measure, the
Company has further requested and Changshu City government has offered to provide any
assistance which the Company may require to help preserve or safeguard its assets in the PRC.
As announced on 16 September 2008, the Company is currently in serious discussions and
negotiations with a potential strategic investor on its investment in the Company. In addition, the
Company is currently engaged in discussions and negotiations with other potential investors who
have expressed an interest to invest in the Company. To date, no term sheet or definitive agreement
has been signed. The Company would like to assure Shareholders that the management is actively
seeking new equity and loan funding to resolve the Group's current situation, but given the weak
capital market and poor economic conditions, there is no assurance that we can be successful in
securing such funding.
Given the above situation, the Company intends to suspend the trading of its shares until it is able to
work out a scheme of arrangement for presentation to creditors and Shareholders for their
consideration. For this purpose, the Company has appointed Rajah & Tann LLP as its legal advisers,
and will also be appointing a suitable financial adviser, to advise the Company on its restructuring.
The Company will continue to keep Shareholders updated on developments as and when appropriate.
Submitted by She Chun Tai, Chairman and Chief Executive Officer, for and on behalf of the Board on
9 October 2008 to the SGX-ST
this counter is a gone case.... sad things, all the broker house called for target price of over $1.00, they are all blind !
suspended , just like those shitty stock like ZhguoJilong, suspended until no where....
good luck folks.
you are right, blue chips man..... not to forget we are aiming for STI 1800 points.. now only the expert says they are looking at 1800 points, as they claim this early year that the 4Q will rebound, jokes jokes jokes.. feel like slapping their face.