Kolin Inc.’s offices raided in financial irregularities probe

The raid came after the discovery of a huge discrepancy of more than NT$5.9 billion between the accounting books of the Taipei head office and SBC, a reinvested affiliate traded on the Nasdaq stock exchange in the U.S.

Prosecutors said they were trying to find out where the large sum went and if there was tampering of accounting records.

Kolin, established 45 years ago, used to be one of the leading suppliers of household electrical appliances, communications equipment and info-technology products.

But a series of bounced checks revealed the company had incurred debts amounting to NT$15.46 billion, plus close to US$20 million in foreign currencies as of Aug. 31.

The company won approval for its restructuring plan from the Taipei District Court in early October, preventing creditors from seeking repayment from the firm within a period of 90 days. Liu Chi-lei, corporate chairman, went abroad while Kolin was delisted from the Taiwan Stock Exchange in early November.

Kolin has managed to continue manufacturing operations, although the volume of product delivery has been scaled down.

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