Lewes, DE -- (ReleaseWire) -- 09/17/2015 --The management of Formosa Liberty Corp. (OTC PINK:FLIB) announces the following:
Formosa Liberty is in negotiations with an offshore Caribbean company for the money to back its legal debt collection efforts against the Chinese government. This is in addition to the agreement last week with a Singapore venture capital firm to raise money from Asian sources within 90 days. Formosa Liberty holds a portfolio of Chinese Euronext listed bonds on assignment for collection.
"In addition to our on-going talks with Chinese funders, we are evaluating an offer from Caribbean source of money at this time." said director Clement Chigbo. "We are seeking an initial investment of $3 to $5 million dollars to ensure that all the available resources are in place to engage in serious litigation to force a quick settlement on these bonds. Our deal with Foundation Capital (Singapore) is also moving forward and we should have necessary money to carry out our legal strategy by the end of the 2015 calendar year. While we cannot say at this time what form a bond settlement would take, we are obviously looking for a return in serious multiples of what our backers invest."
Last week Formosa Liberty announced that it had entered into a funding arrangement with Singapore based Foundation Capital Pte. Ltd. Under the agreement with Foundation Capital, the Singapore firm agreed that it would locate and deliver funding for the bond collection and litigation costs and defaulted debt restructuring efforts of Formosa Liberty. Funds are expected to arrive before the end of the calendar year.
Formosa Liberty restructures exchange traded and other defaulted government bonds. The Company currently has on assignment a portfolio of over 10,000 defaulted bonds of which approximately 5000 are NYSE Euronext traded bonds.
In 1987, the People's Republic of China (Beijing) partially settled outstanding claims by some English holders of Chinese bonds for a multimillion dollar pay that left the vast majority of bondholders outside England as well as some English holdouts looking for other collection outlets. Formosa Liberty believes the key to collection is to also pursue the original issuer, the Republic of China, which is still the government of Taiwan.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "will" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Corporation. The forward-looking information contained in this release is made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
Typically the longer sovereign debt has been in default, the less likely a settlement. Some debt is so old that the bonds have more current value as a historical document than as a security. Sovereign bonds that no longer trade on an exchange and have no current ISIN number should not be referred to as a security per se and are listed on the Company books as having no value. There can be no assurance that the Company will be able to successfully redeem the bonds in its inventory. Formosa Liberty makes no representation that defaulted sovereign debt can be redeemed or restructured successfully as a successful settlement depends on many factors beyond the control of bondholders of the Company.