HONG KONG – In June, Sami Caracand received a notice from Asia Aluminum Holdings Ltd., a Chinese company in which he had purchased $250,000 of debt. It asked him to support a deal to wind up the firm and sell its assets. In return, Mr. Caracand might receive 20 cents for each dollar of debt he held.
He had rejected an earlier offer from the company to pay him 27.5 cents for each dollar of debt because he felt the Hong Kong-registered aluminum maker didn’t adequately explain its financial troubles. “There was an issue of transparency,” says Mr. Caracand, an investor based in Dubai. “Not much information was given.” This time, convinced there were no more alternatives, he said yes.
Faced with a recalcitrant emerging-market borrower that owed them more than $1.2 billion, foreign creditors of Asia Aluminum had fought for their rights — and lost.
Read the Full Story: BY PETER STEIN AND LAURA SANTINI, Wall Street Journal
The nation’s largest labor union and some allied Democrats are pushing a new tax that would hit big investment firms such as Goldman Sachs reaping billions of dollars in profits while the rest of the economy sputters.
The AFL-CIO, one of the Democratic Party’s most powerful allies, would like to assess a small tax — about a tenth of a percent — on every stock transaction.
Small and medium-sized investors would hardly notice such a tax, but major trading firms, such as Goldman, which reported $3.44 billion in profits during the second quarter of 2009, may see this as a significant threat to their profits.
Read More: By Alexander Bolton, The Hill