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The company has expanded rapidly. Under the policy of administration of Cheung Kok-economic recession, but the financial world's riti in year 2008. Affect the company's debt by the State during the first 2 weeks of January, 2009. The company must also fall on bankruptcy rumors about the situation because it was considered impossible to pay the debt, but the company's thakhao Tajima, rumor and proves that bonsat has the potential to pay debts and their crisis comes. first week of January, 2009, was proving to be a challenge for Nine Dragon's Paper. The company hadto repeatedly deny rumors that it was on the edge of bankruptcy. A variety of media reports over the past twoweeks had reported that the company's inability to service its debt would lead to a bankruptcy filing.Incorporated in Hong Kong in 1995, Nine Dragons Paper (Holdings) Limited, had become an internationalpowerhouse in the paper industry. The company's primary product was linerboard, with a product lineincluding kraftlinerboard, testlinerboard and white top linerboard in a portfolio of paperboard products usedto manufacture consumer product packaging. The company had expanded rapidly and spent extensively.But by January 2009 the world economy was spiraling downward. Squeezed by market conditions andburdened by debt, Nine Dragons Paper (NDP), the largest paperboard manufacturer in Asia and second largestin the world, saw its share price drop to HK$ 2.33, 90% off its high and less than half of book value. As theeconomic crisis of 2008 bled into 2009, export-oriented industries suffered. Rumors had been buzzing sinceOctober that NDP was on the ropes. It was carrying so much debt that more than one analyst was asking "Willthey go bust?" Was the financial crisis of 2008 about to claim another victim, or had friction between theglobal economic crisis and the company's debt ignited jittery nerves in the global markets?
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