Two Infodisc Technology checks refused

A check for NT$15 million issued by Infodisc Technology Co (訊碟科技), which is under government investigation over an alleged financial scandal, was refused yesterday, two days after the maker of recordable discs bounced a check for NT$13.5 million, a company official told the Taiwan Stock Exchange Corp.

Tsai Hsiao-pei (蔡曉佩), Infodisc's public relations specialist, said the move to bounce the checks is because the company wanted to manage its debts with all its creditor banks on a just basis.

Infodisc last week announced a NT$4.5 billion loss for the first half of the year, ascribing the loss to an investment in a fund registered in the Cayman Islands.

The company said that it retained abundant floating capital to defray these two checks and that it would deal with the issue after reaching an agreement with all creditor banks next week, Tsai said. She declined to elaborate.

Entie Commercial Bank (安泰銀行) held the check for NT$15 million that matured on Wednesday and Macoto Bank (誠泰銀行) the one for NT$13.5 million.

The nation's financial regulators found problems at Infodisc after the company waited until Aug. 27 to report a June 30 fund remittance of NT$2.6 billion (US$77.75 million) from Robabank's Singapore branch to the Gold Target Fund in the Cayman Islands. Infodisc claimed it had bought a 15 percent stake in the fund.