Peregrine Sewu Securities unhurt by problem in HK<\/p>\n
JAKARTA (JP): Indonesian securities house PT Peregrine Sewu
\nSecurities will not be directly affected by the financial
\ndifficulties faced by the Peregrine Group of Hong Kong.<\/p>\n
Peregrine Sewu Securities president Timothy Gray said
\nyesterday the difficulties being experienced by the Peregrine
\nGroup in Hong Kong would have no direct impact on PT Peregrine
\nSewu Securities in Indonesia.<\/p>\n
PT Peregrine Sewu Securities is 85 percent owned by the Hong
\nKong-based Peregrine Group and 15 percent by the Indonesian
\nGunung Sewu Group of the Ongkosubroto family.<\/p>\n
\"Peregrine Sewu Securities is a separate legal entity with its
\nown board of directors consisting of key department heads,\" he
\nsaid.<\/p>\n
The securities house is a profitable company with a strong
\nbalance sheet and no outstanding debts, he said.<\/p>\n
He said Peregrine Sewu, which had no exposure to any fixed-
\nincome client borrower, would be able to carry on its corporate
\nfinancing, equity brokering and fund management activities in
\nIndonesia.<\/p>\n
An industry source told The Jakarta Post recently that
\nPeregrine Sewu Securities, along with securities houses PT Sasson
\nSecurities Indonesia, PT Panin Securities and PT Credit Lyonnais
\nCapital Indonesia, had major layoffs in their management due to
\nfinancial problems.<\/p>\n
Early November last year, Lippo Securities, one of the first
\nlisted securities companies on the Jakarta Stock Exchange, fired
\nseven top executives as part of its efficiency program to cope
\nwith the monetary crisis.<\/p>\n
Peregrine Investments Holdings Ltd, one of Asia's largest
\ninvestment banking groups, said yesterday it had failed to reach
\nan agreement with the Zurich Group of Switzerland on proposed
\ninvestment in Peregrine.<\/p>\n
The Peregrine Group said it had anticipated that a subsidiary
\nof the Zurich Group, Zurich Center Investments, would inject
\nUS$200 million in the group in return for convertible preference
\nshares.<\/p>\n
A statement from the Peregrine Group said the First Chicago
\nbanking group was to have injected a further $25 million, but
\nsuch investment was contingent upon the completion of the Zurich
\ntransactions.<\/p>\n
As a result, the Hong Kong Securities Futures Commission (SFC)
\nissued restrictions on 10 companies under the Peregrine Group,
\nbanning them from conducting business and disposing of any assets
\npending further investigation into the group's financial
\nsituation, the statement said.<\/p>\n
Hong Kong's crippled investment bank Peregrine Investments
\nHoldings gave up its battle for survival yesterday and lodged an
\napplication for liquidation, company officials said.<\/p>\n
\"An application is under way for liquidation,\" company
\nspokesman Tom Grimmer said at Peregrine's city headquarters.<\/p>\n
\"The board of Peregrine Investments Holdings Ltd regrets to
\nannounce that the company has taken preliminary legal steps in
\nthe preparation of an application for liquidation,\" a company
\nstatement said.<\/p>\n
\"A decision will be made on staffing levels by the liquidator
\nwhen appointed, probably tomorrow (today),\" Grimmer said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/peregrine-sewu-securities-unhurt-by-problem-in-hk-1447893297",
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"sponsor": "Okusi Associates",
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