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Picvue submits restructuring plan

"We have been seeking aid since we drifted into financial trouble, but we still have failed to solve the problem."

Picview filing to the Taiwan Stock Exchange Corp

Picvue Electronics Ltd (碧悠電子), one of leading makers of flat panels, filed a restructuring plan yesterday with Hsinchu District Court for bankruptcy protection after its glass manufacturing affiliate posted massive losses for several years.

The company's filing came after it defaulted on a NT$330 million (US$10.08 million) payment on Wednesday last week. Picvue, based in Hsinchu, said it was negotiating with creditor First Commercial Bank (第一銀行) about repaying the loan.

"We have been seeking aid since we drifted into financial trouble, but we still have failed to solve the problem," the company said in a filing to the Taiwan Stock Exchange Corp.

Picvue said it decided to take the drastic measure to avoid losses from the widening losses as well as to safeguard rights of its creditors, shareholders and employees, as it believes the company has the potential for future growth.

The restructuring program, which was approved by the board of the company, would put Picvue under the protection of bankruptcy laws.

As of the end of June, Picvue had accumulated about NT$7.09 billion in losses since 2001, according to the company's statements filed with the Taiwan Stock Exchange.

"We are not surprised about Picvue's bankruptcy; the company has been in financial crisis over the past several years, which also caused talented workers to drain out," said David Chen (陳賜賢), a flat-panel industry analyst who works for Market Intelligence Center (資訊市場情報中心).

Picvue's failure to turn around its liquid-crystal-display (LCD) glass substrate manufacturing unit, Picvue Optoelectronics International Co (碧悠光電), meant that Taiwanese companies could not make any significant breakthrough in making key components used in for LCD panels, he said.

Shares of Picvue, which are banned from margin trading, plunged to NT$0.64 yesterday, setting an all-time low on the Taiwan Stock Exchange.
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