Local govt bails out SVA

SHANGHAI: The local government has decided to invest 1 billion yuan to bail out the debt-laden electronics giant SVA Group, one of the largest State-owned companies in the city, according to recent media reports.

The firm may post 1.8 billion yuan in losses for 2008, and has been unable to get a loan from banks and pay salaries. The government would have to liquidate its debt via national appropriations and reconstruction, an anonymous source close to the matter was cited by 21st Century Business Herald as saying.