Rebar admits notification delay

The company attributed its financial difficulties at that time to the difficulties experienced by its parent company.

As a result of China Rebar filing for insolvency protection, Idee's employee salaries and payments to retailers would be guaranteed, she said.

Idee's five branches nationwide booked sales of NT$9.63 billion (US$295 million) last year, declining by 10 percent from the previous year, but still pulling in profits.

The Rebar Group's other money-making subsidiary, Rebar Crowne Plaza Taipei, would not be affected either, public relations official Karen Lin (林淑娟) said.

The hotel declined to disclose revenue figures as it is not a listed company.

Mega Financial Holding Co (兆豐金控) is China Rebar and Chia Hsin's biggest creditor bank and faces possible losses of NT$5.4 billion, the Chinese-language Economic Daily News reported yesterday.

Other creditor banks include Taiwan Cooperative Bank (合作金庫銀行), Chang Hwa Commercial Bank (彰化銀行), Hua Nan Financial Holdings Co (華南銀行) and First Financial Holding Co (第一金控), the report said.

China Rebar and Chia Hsin have a total liability of NT$40.6 billion, according to the two companies.

"Corporate collapses can inflict damage to creditor banks," said Tracy Chen, who helps manage about US$2.3 billion at PC Securities Investment Trust Co in Taipei.

Shares of Mega Financial closed down 3.31 percent at NT$23.40. Taiwan Cooperative lost 2.6 percent to NT$24.50, Hua Nan went down 2.2 percent to NT$24.30, First inancial fell 1.2 percent to NT$24.95, and Chang Hwa slipped 0.9 percent to NT$23.

Additional reporting by Bloomberg