| Seoul marks recovery from 1997 crisis
South Korea has fully recovered from the devastating 1997 economic crisis, the government said yesterday on the eve of its anniversary, but commentators said crucial reforms were still not in place. On Nov. 21, 1997, Seoul asked the IMF for a bailout of US$57 billion -- the largest in the fund's history -- to avoid a state bankruptcy. In return it effectively gave up sovereignty over the economy, accepting tough austerity measures -- including high interest rates -- prescribed by the IMF. The turmoil swallowed up 16 of the 30 largest business conglomerates, including the second-largest Daewoo Group, and forced some 900 financial institutions out of business. Millions lost their jobs due to corporate restructuring and insolvencies, even though the government injected some US$180 billion to bail out failing businesses and financial institutions.
Newmark Homes' parent company considering bankruptcy
Homebuilder TOUSA Inc. said it is considering filing for Chapter 11 bankruptcy protection after reporting a deep third-quarter loss. "Based on the foregoing, the company believes there is substantial doubt about its ability to continue as a going concern," the Hollywood, Fla.-based company said in a statement. TOUSA said it is considering all available in- and out-of-court restructuring and reorganization alternatives, "including a possible Chapter 11 filing." TOUSA owns the homebuilding brands Engle Homes, Newmark Homes, Fedrick, Harris Estate Homes and Trophy Homes. In San Antonio, the company builds homes under the Newmark Homes brand. In the company's latest financial report for the quarter ended Sept. 30, TOUSA reported losing $619.7 million, or $10.43 a share, on revenues of $501.2 million.
Latest Delphi bankruptcy plan panned
Delphi Corp. said Thursday it had revised its plan of reorganization for the third time in recent weeks, but it failed to win the support of shareholders and creditors. The revisions reflect Delphi's difficulty borrowing money in a tight global credit market, and raise questions about whether it can win approval of the plan. Among the changes: Delphi proposed to reduce its settlement of financial disputes with former parent General Motors Corp. by $100 million. .
Thomson Focus: Pension funds seen posting huge losses from subprime investments
NEW YORK (Thomson Financial) - Over the past several years, U.S. pension funds have been among the top investors in the mortgage-backed securities (MBS) and collateralized debt obligation (CDO) markets, along with their real-money partners, insurance companies and money managers. After years of funnelling money into MBS and CDOs -- portfolios of mortgages bundled and sold as debt securities -- the total size of pension funds' securitization holdings are massive. With thousands of pension funds invested in housing debt either directly or through hedge funds, the figure could add up to tremendous losses for many of the nation's employees. Thomas Martin, president of the Homeowners Consumer Center, a Washington, D.C.-based consumer advocacy group, estimates that pension funds will take a $1 trillion hit from the devalued securities.
Wilkins faces tax increase to avoid deficit
During a budget meeting Monday, Wilkins Manager Rebecca Bradley announced that the township could face raising $1 million with a tax increase in 2008. Ms. Bradley noted the township's recent settlement with ProCare Inc. for $950,000 for overpaid taxes, increased living costs and stagnant real estate values have led to a looming budget deficit of about $900,000 for 2009. "With the loss of the revenue stream generated by ProCare, the continuing increase in expenses and the flattening of real estate and Act 511 revenues, we have finally reached the point where there is little alternative but to raise taxes," wrote Ms. Bradley in an e-mail to the Post-Gazette. Ms. Bradley said Wilkins has not raised taxes since 1993 and a real estate tax increase would provide $300,000 to its revenue stream for 2008.
Popular capitalism takes root in Saudi IPO boom
Popular capitalism is taking root in the Arabian Gulf with the boom in stock market flotations, led by record offerings in Saudi Arabia, according to financial industry observers. The most active initial public offering (IPO) market and largest economy in the Middle East - comes under the spotlight next week at the 2nd Saudi IPO Summit from 10-14 November 2007 at the Four Seasons Hotel, Riyadh, under the patronage of Prince Salman Ibn Abdul Aziz Al Saud, Governor of Riyadh. �Increasingly Saudi Arabian companies are going public to raise capital and benefit from the confidence of local investors,� said Deep Marwaha, senior conference manager for IIR Middle East, organisers of the Saudi IPO Summit. �Popular capitalism is being created here and also bringing international capital into local markets on a scale never seen before.
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