Ferrochina   

Ferrochina

If they go bust, we will probably see REAL panic selling in the Singapore bourse. Suspension looks to be the sensible action at least until they find a solution to this mess.

 

Ferrochina says another CNY4.5b in loans may also become due.

The main bankers of Ferro China are Citibank China, BNP, Commerz Bank and China Construction Bank.  There is not much information available but could this bank loan problem be the result of the current global credit squeeze facing Global Banks. With banks reluctant to lend, many other companies could be facing similar problems. Hopefully its a bank problem and not a problem with the company's business.

 

Omg this is scary. Anyone suffers from this counter? 1 local bank still recommend to hold this counter few months ago.. what the...

 

FC has also request trading suspension instead of trading halt......Big time

 

I think time like this should hold CASH, GOLD and maybe high yield pennies. Why pennies, because they are small, they are shielded from all the high end financial instrument which many big boys ended up in deep sh*t.

There is no denial that the blues will be the first to cheong when the mkt turn around. However in this period, there seems to have no turnaround. No sight of turnaround as yet. SGX dropped quite a bit from $13 to $8 some time back, but because the financial turmoil stepped up, SGX is now traded about $5+ now. Do you think at $5+ is a good buy now when all the bad news in banking, properties and recession worries looming?

There is no guarantee that the pennies will go up now, but most probably down instead. Hence selectively choosing a counter that gives good divvy could shelter us better if the stock is not doing well going forward. FerroChina is one of the pennies I looked at, but did not get into trade. It's because I am mostly in CASH now, only leaving 2 counters of pennies with small amount invested and let it roll.

 

JP Morgan warning got sounded a few weeks ago, according to article here.

 

we are expecting more such news in months ahead.

 

 so buy only blue chips in time like now.
 

 

They over leveraged and expanded too fast

 

I remembered sometime back this year, FerroChina was suppose to go into M&A with HG Metal and at the 11th hour, HG Metal pulled out of the deal. I was smelling something fishy about the deal then, but did not expect FerroChina will land itself in such a mess now.

Anyway by record, its NAV is $1.60 and the last traded price was $0.545. I assume this numbers do not include the debts they owe. If they file chapter 11, and liquidate their assets, hope investors will still see $$. It's another China Aviation in the making....CHINA STOCK AGAIN.

I can assure that investors will definitely lose confidence in S-Shares.

 

UPDATE 1-FerroChina fails to pay loans, suspends some output

SINGAPORE, Oct 9 (Reuters) - Small steelmaker FerroChina (FERR.SI: Quote, Profile, Research, Stock Buzz) said on Thursday it was unable to repay 706 million yuan ($104 million) in working capital loans and had suspended operations at its manufacturing plant in China.

In a sign the global credit crisis is spreading to the corporate sector in Asia, the Singapore-listed firm also said it has 2.03 billon yuan worth of loan facilities and notes that may become due and payable.

Uh......Oh.........  another sacrifier....................  sayonara Ferro...................



 

 

It is as good as ready for chapter 11 in US terminology.. I just hope this would not bring down all S-Chips. Effects can be seen today with Cosco, YangZijiang immediately after the announcement release....

In other words, shareholders will not see any value for this counter as I expected any investors here would depress the price and become a vulture fund investor.

Those with good fundamental ones need not fear.

 

oh no, of course the news is bad, in fact horrible.. the world credit crisis now made the loan and borrowing harder....

clear out yourself from this counter ...... run if you still have chance.

 

Analysts' darling down to the pits now.... 

 

Clarification Of Trading Halt And Business Update 

http://info.sgx.com/webcorannc.nsf/ef3ba6cb188613ea482571b2003641d3/a1a72898dc331be2482574dd002bf48b?OpenDocument

Don't look good....

 

FERROCHINA LIMITED

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

 

Look at SGX announcement for the lifting of halt.

 

Tks Petewan for ur reply.

 

The company had announced on the 16 sept that they had entered into discussions and negotiations on the term of investment, with a potential investor.  So I believe that the trading halted today is related to the announcement of the potential investor's decision on whether to invest in ferro. 

virgoan      ( Date: 08-Oct-2008 20:25) Posted: anybody knows why it was halted n when it resume trading?

 

anybody knows why it was halted n when it resume trading?

 

lucky trading halt, if not at least go down to $ 0.48.