US bidders secure bad loans

Bank of America and US agricultural group Cargill are to buy US$211 million in non-performing loans having emerged winners at a bad debt auction run by Huarong Asset Management, the Standard of Hong Kong reported. The loans, based in Xiamen and Fuzhou in Fujian province, were transferred from Industrial and Commercial Bank of China in June 2005 and divided into three packages. Bank of America is to buy two packages and Cargill one. The loans are classified doubtful, the second-worst ranking, but the bidding prices were still said to be in excess of 40% of the loans total value.