Taiwan Kolin’s restructuring plan approved by district court

Taiwan Kolin raised the restructuring plan last Friday after winding up a meeting with creditor banks.

During the meeting, up to 80 percent of the creditor banks agreed to support the company’s continued operations, prompting the firm to file a restructuring plan with the court to safeguard its assets from being disposed.

In the coming 90 days, any creditor bank or company will be banned from asking Taiwan Kolin to repay debts, while the firm itself will also not be allowed to make any repayment.

The company will be allowed to honor salary payment, retirement pension payment, and severance payment to employees during the specified period.

Lee Dun-jen, Taiwan Kolin’s president, told reporters yesterday that his company will move to negotiate with creditor banks and supporting plants over how to reschedule repayments.

As of Aug. 31, the firm’s outstanding debts amounted to NT$15.46 billion plus a greenback-based loan of US$22.7 million, with monthly interest payment to banks amounting to around NT$3 million.

In related news, DigiMedia Technology Co., an affiliate of Taiwan Kolin, was reported to have owed around 200 employees some NT$20 million in salary payment, due mainly to the impact of the mother firm’s financial troubles.

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