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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies

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To: TokyoMex who wrote (4938)	9/30/1998 6:47:00 AM
From: TokyoMex	Read Replies (2) of 119973

Another 35 houses in LTCM bail-out By William Lewis and Tracy Corrigan in New York. Additional reporting by Jane Martinson in London, Richard Waters in New York and Nikki Tait in Chicago The effort to rescue Long-Term Capital Management, the US hedge fund, has been broadened to include about 35 other financial institutions. According to people close to the fund, the institutions have agreed to extend liquidity to it through a variety of means, including a $900m syndicated loan. Others have agreed that they will waive margin calls temporarily. A 14-strong consortium yesterday took control of the troubled fund. It has agreed to inject $3.6bn of equity to save it from going into liquidation. The bail-out deal was signed late on Monday night, but only after about 35 financial institutions outside the consortium had been persuaded to extend credit and other liquidity to the fund. About nine members of the rescue consortium are also members of a 24-strong $900m loan syndicate which was arranged two years ago by Chase Manhattan. LTCM's attempt to draw down part of the loan facility two weeks ago is said by people close to the fund to have been one of the immediate catalysts for sending it into a liquidity crisis. A number of syndicate members refused to provide loan facilities to the fund. The consortium now owns 90 per cent of the fund. Original investors are likely to own two-thirds of the remaining 10 per cent, with the fund's partners holding the remainder. The partners will continue to receive fees from the management company. While known primarily for its bond arbitrage expertise - attempting to exploit differences between bond prices to make a profit - the fund is also known to have substantial equity arbitrage investments. Meanwhile, Liechtenstein Global Trust, was set to announce today that the collapse of LTCM could cost it up to $30m. LGT was not considering legal action "for the time being".

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