Gitic declared bankrupt

Gitic declared bankrupt

BEIJING (DPA): A southern China court on Saturday announced
the formal bankruptcy of the Guangdong International Trust and
Investment Company and assigned a special task force to liquidate
its assets, the official media reported Sunday.

The Higher People's Court of Guangdong said Gitic and its four
subsidiaries had failed to meet maturing debt obligations because
of poor management and illegal fund-raising, the Xinhua news
agency said.

The news follows the Jan.11 announcement by provincial
officials of Gitic's demise. The central bank closed the
investment firm in October. It is the first case involving the
failure of a non-banking financial institution in the history of
Communist China.

Gitic amassed debts reaching some 36.2 billion yuan (US$4.3
billion) against the company's assets of 21.5 billion yuan ($2.6
billion), Xinhua said.