Legal Issues in Acquiring NPLs
July 02, 2004 | BY
clpstaff &clp articlesBy David Liu and Nelson [email protected]@pdlo.comInternational investors are again competing aggressively in the PRC market for the more…
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By David Liu and Nelson Zhou
International investors are again competing aggressively in the PRC market for the more than Rmb2 trillion in non-performing loans (NPLs) that are being offered by China's state-owned commercial banks, and state lenders are racing to clean up their bad debts ahead of their planned public listings. Here we will discuss the various legal issues encountered by market players in acquiring NPLs.
Issues in the "Sale+Joint Venture" Structure
"Sale+Joint Venture" is one of the transaction structures in this market. Under this structure, foreign buyers purchase a