Summary
A description of the events leading to the collapse of China Aviation Oil under US$550m of derivative trading losses and subsequent attempts to identify the causes and save the company from liquidation via a debt restructuring scheme of arrangement.
Teaching objectives
Identify corporate governance and risk management measures necessary for smooth running of a company, as well as the dangers of derivative trades in the hands of those either ignorant or reckless of the risks.
Keywords
- Corporate governance
- Risk management
- Derivative trading
- Debt restructuring
- Corporate Governance
- Investors, Stakeholders and Accountability
