Banks hound debtor firm

Four domestic banks are hounding Ever Fortune Industrial Co (長億實業) to pay back its NT$1.5 billion in corporate debt and an outstanding NT$3.5 billion syndicated loan.

According to Hsieh Chao-nan (謝昭男), executive vice president of Chang Hwa Bank (彰化銀行), his bank, First Commercial Bank (第一銀行), Hua Nan Commercial Bank (華南銀行) and Taiwan Business Bank (台灣企銀) yesterday held a meeting to discuss plans to collect on debt owed by Ever Fortune.

"While failing to pay interest on the NT$3.5 billion loan since March, Ever Fortune has also breached its contract, entitling the banks to claim its corporate bonds, which are due soon," Hsieh told the Taipei Times yesterday.

"We expect Ever Fortune to pay its interest and principle on schedule," Hsieh added, unwilling to confirm whether the lenders will take drastic measures such as refusing to pay the construction company's checks.

Because Ever Fortune is the largest shareholder in Evertransit International Development Corp (長生公司) -- which is building the rail system connecting Taipei with CKS International Airport -- local media yesterday speculated that the company's financial difficulties may force Evertransit to back out of the plan.

Evertransit is expected to propose a complete financial portfolio to the Ministry of Transportation and Communications on Friday before finalizing and inking its contract with the government.

Evertransit said last week that Ever Fortune is just one of the project's 21 shareholders and its financial crisis will not affect the project.

In order to pay back its loans, Ever Fortune yesterday said it plans to liquidate 18 percent of its stake in the profit-making Everpower Plant (長生電廠) in Taoyuan.

"We plan to price the plant at NT$30 per share, liquidating a total of NT$2.7 billion, no later than December," Ever Fortune's executive vice president Chiang Chi-chen (江啟正) told the Taipei Times yesterday, adding that some buyers have already been located.

But with the stock market in a slump, Chiang said now is not a good time to sell off the corporation's shares.

He also said the corporation has a great deal of land for sale, but falling real estate prices have hurt plans to liquidate those holdings.

Chiang said he hoped the company's creditors could give the corporation some more time to clear up its debts, urging the banks not to take any drastic measures that will damage both the company's survival and its ability to pay back its loans.