This is what I have been waiting to hear. I had wondered, if it is just a matter of the collatteral not existing, what is the real impact to the business if the actual products sold were tangible and real. All reports I have read are that STP has sold millions based and benefitted from the realtionship, even though the bonds may not have been real. And then i am wondering if STP has some idea, and simply wants to take over the business which they have indicated. The business itself seems real enough, is responsible for millions in sales, and may become STP for free despite the scams methods of getting it off the ground.
that is stating the obvious that CDB still expects STP to guarantee those loans because that has always been the case. Nothing has changed in my view. CDB is more positive about STP's ability to pay and operate going forward and that remains to be seen. They have to be, they made the loan and they probably want to push attention away from the fact that CDB did an inept due diligence job on the collateral. Will CDB and other chinese banks help to refinance the $350 million bond due in 2013? bonds are what trading at mid 40's? if these bonds go up to 60's then in a few months then good sign STP is making grounds in getting refinancing. But mind you, refinancing cheap loans with 10% to 15% interest rates in China means equity is still hung out to dry.