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First Allocation made of Property of Bankrupt GITIC
The first allocation of 51.3 million yuan (US$6.18 million) in the property of the bankrupt Guangdong International Trust and Investment Co. (GITIC) was made on May 30.
At the creditors' meeting convened by the Intermediate Court of Guangzhou Wednesday, the liquidation group said this sum was paid to creditors of the Guangdong International Leasing Co. Ltd., a GITIC subsidiary.
The first allocation amounted to 3 percent of the company's debts.
The liquidation group, composed of experts from world famous accountant and legal firms including KPMG Peat Marwick, has confirmed 67 debt claims of the Guangdong Int'l Leasing Co. Ltd., totaling 1.68 billion yuan (US$202 million).
Sources at the meeting reported that the liquidator is now committed to collecting debts owed to Guangdong Int'l Leasing, and staging auctions to liquidate the company's property.
GITIC, the investment arm of booming Guangdong Province, was closed in October 1998 because of its inability to meet outstanding debts. It had assets of 21.47 billion yuan (US$2.6 billion) but debts amounting to 36.15 billion yuan (US$4.3 billion).
GITIC's liquidation proceedings will be handled in four stages according to GITIC's assets, which are divided among its four companies: GITIC headquarters, Guangxin Enterprise Co., GITIC Shenzhen Co. Ltd., and Guangdong International Leasing Co. Ltd..
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