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Huarong to Auction off Bad Loans
The Huarong Assets Management Company will issue a notice tomorrow inviting international public bids for the bad loans it owns.
It's the first time China will deal with bad loans according to international practice, an official from Huarong said, adding that overseas and domestic investors will have to meet the same requirements and enjoy the same rights in the procedure.
The bad loans for the auction include truck assets, credit rights and guarantee rights that Huarong owns, involving assets with book value of 14.9 billion yuan (about 1.8 billion U.S. dollars) from 331 companies.
These assets, covering real assets, building materials, metallurgy and electronics, will be divided into five packages according to different regions.
The financial consultant for this auction will be Ernst & Young and the formal date for entering a bid will be sometime at the end of October. The date details are to be unveiled later, said the official.
In June, Huarong went on successful road shows in England and the United States.
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