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Tag Archive: Bankruptcies


China’s Li Keqiang Warns Investors To Prepare For Wave Of Bankruptcies

 

 

 

 

” China is braced for a wave of industrial bankruptcies as its slowing economy forces companies with sky-high debts to the wall, the country’s premier has said.

  Premier Li Keqiang told lenders to China’s private sector factories they should expect debt defaults as the world’s second largest economy encounters “serious challenges” in the year ahead.

  Speaking after the annual session of the national people’s congress, Li Keqiang said: “We are going to confront serious challenges this year and some challenges may be even more complex.” He told lenders to China’s private sector factories they should expect debt defaults.

  Li said China must “ensure steady growth, ensure employment, avert inflation and defuse risks” while also fighting pollution, among other tasks.

” So we need to strike a proper balance amidst all these goals and objectives,” he added. “This is not going to be easy,” he said.

  Li’s warning followed the failure of Shanghai Chaori Solar Energy to make a payment on a 1bn yuan (£118m) bond last week. The default was the first of its kind for China and widely seen as pointing to the end of 11th-hour government bailouts for troubled enterprises.” “

 

The Guardian has the details

 

 

 

 

 

 

 

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  “California, America’s answer to Greece, is continuing to unravel. Via Meadia readers are already familiar with the state’s unaffordably lavish pensions and collapsing housing bubble, as well as the bankruptcies in Stockton, San Bernadino and Mammoth Lakes, but now even more cities are on the verge of bankruptcy.”

The Green Graveyard of Taxpayer-Funded Failures

 

 ” Solar-cell manufacturer Solyndra became a household name when it collapsed, taking $627 million in American taxpayer dollars with it. It’s the poster company for the government picking winners and losers—or really, just losers—in the energy market. But there are 12 more “green energy” losers that have declared bankruptcy despite attempts to prop them up with taxpayer money—and the list is growing.

There’s a reason why these companies could not rely solely on private financing and needed help from the government. They couldn’t make it on their own; they couldn’t even make it with extra taxpayer help “

 

He’s as adept at investing as he is at job creation .

   Using the government method of venture capitalization , public cost , private profit , we’ll all be beggars soon enough .

   Well , almost all of us . If you happen to be connected you may share in the private profit while the rest of us get to share the public cost .

  ” As part of its Scaling Up Nascent PV At Home
(SUNPATH) project, DOE’s Energy Efficiency
and Renewable Energy (EERE) division
announced three awards in June to promote
high-volume solar energy production.
The largest of the three awards, totaling $25
million, went to Soitec Solar, a French
company, to build a solar production facility in
San Diego, CA. While Soitec is not in dire
financial straits like some other DOE-backed
companies , it posted hefty losses during its last
financial year, which ended March 31. A
number of its major financial indicators were
worse than the prior financial year.
According to a company report, Soitec posted a
gross profit of $63.1 million, down from $82.9
million the year before; operating losses of $
57.3 million, down from an operating profit of
$2.3 million the year before; and a net loss of
$70.5 million, up from $22.4 the year before
(all dollar amounts are converted from euros).