Wed, Nov 17, 2004 - Page 11 News List

CTV appeals over seizure

By Joyce Huang  /  STAFF REPORTER

China Television Co (CTV, 中視) yesterday decided to appeal to the courts against the Securities and Futures' Investors Protection Cen-ter's provisional seizure of its two buildings over the Procomp Infor-matics Co (博達科技) scandal.

"Like all other investors, CTV is also a victim of Procomp Informatics' default," CTV vice president Chen Jiu (陳車) told a press conference at the Taiwan Stock Exchange.

CTV -- the majority of whose shares are held by the Chinese Nationalist Party (KMT)-owned Hua Hsia Investment Holding Co (華夏投資) -- saw its shares open limit down yesterday as investors weighed possible links to Procomp. The shares closed 7 percent lower at NT$10.6.

Chen said that CTV chairwoman Cheng Su-ming (鄭淑敏), who served on the Procomp supervisory board, committed no wrongdoing as an outside supervisor and therefore, CTV shouldn't be punished.

Chen urged the center to safeguard the rights of CTV's investors while seeking compensation for Procomp investors.

Accompanied by judges, center officials on Monday seized two CTV buildings worth NT$2 billion as part of their efforts to offset some of the NT$3.3 billion in claims filed by Procomp investors. The center filed a lawsuit against 19 members of Procomp's management, including Procomp chairwoman Sophia Yeh (葉素菲) and Cheng.

Although CTV has already used the two buildings as collateral for NT$1.6 billion in loans, center officials believe the buildings' remaining net worth of NT$400 million can offset some claims.

In addition to trying to get the seizure overturned, CTV will also seek a court order, requesting the center to open court trials in 20 days in order to minimize any negative impact the seizure might have on its short-term liquidity, Chen said.

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