INDIAN GROUP TO SAVE NAURU FROM BANKRUPTCY

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WELLINGTON, New Zealand (RNZI, May 2) - Nauru is reported to have agreed to a property deal that will save it from bankruptcy.

Under an agreement arranged in Sydney, Australia, an Asian property group will take over some of Nauru’s investment property in Australia.

In return, the Indian-based Hiranandani or HCW group says it will wipe out more than US$230 million of debt.

The deal comes a week after the Australian government signed a treaty with Nauru to help it out of a financial crisis after the American company, General Electrical Capital Corporation, moved to recover its debts.

Raj Hiranandani of HCW said he plans to enhance the value of the property portfolio and turn a profit.

HCW stepping in means the properties will not have to be sold to pay the nation’s debts.

May 3, 2004

Radio New Zealand International: www.rnzi.com

 

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