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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (1084)	1/18/1998 4:35:00 PM
From: Zeev Hed	Respond to of 9980

Sankar, I was under the impression (wrong possibly) that when a borrower ca no longer service his loans, the loans are "called" and the borrower's assets are sold to the highest bidder and then if any money is left after the lender laons (and interest) are paid, the borrower resigns itself the the "poor house". Have things changed markedly? Are you telling me that the stock holders of Pergrine are going to come out whole but the lenders to Pergrine are going to foot the bill of its oolish lending in Indonesia? Or possibly, the cab company in Indonesia will survive? Zeev

To: Rational who wrote (1084)	1/18/1998 5:14:00 PM
From: Jack Clarke	Read Replies (1) \| Respond to of 9980

Sankar, Thanks for your explanation. With regard to the borrower benefitting from not being able to repay the lender, >>Just imagine that when a lender cannot collect the money from the borrower (Indonesian corporation), it is the latter who benefits. does this imply someone's bailing out the borrower with other people's money? I was under the impression that if a borrower cannot pay his loans, he declares bankruptcy and his assets are forfeited. Also, how does this affect that mega-lender Japan, i.e, with Korea and the other countries who cannot pay off their borrowed money? Jack