china-viewed-most-difficult-country-for-distressed-debt-investors

China viewed most difficult country for distressed debt investors

China is the most difficult country for creditors when it comes to exercising their rights over security, as current laws don't provide the protection they need, a recent survey shows.

Respondents to a recent survey about the Asia-Pacific distressed debt market in 2010 were optimistic about distressed debt opportunities in the region in general, and in China specifically, but also expressed concerns about the enforcement of creditor rights in China.

Three-quarters of the respondents voted China the most unfavourable place to exercise rights over security, ahead of Indonesia. In China, the political considerations normally come before rigid enforcement of the law, said Scott Bache, partner at law firm Clifford Chance. Getting access to the assets is certainly the biggest problem in China. If you can't get access to the assets and further information, it is hard for the guys holding those assets to sell them...

¬ Haymarket Media Limited. All rights reserved.

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