Temporary managers to steer China Rebar group

The Taipei District Court yesterday appointed three temporary managers for the financially troubled China Rebar Co (中國力霸) while it continues to review the company's insolvency reorganization petition, which was filed last December.

The court appointed a deputy manager of the Mega International Commercial Bank (兆豐銀行), which is a major creditor of Rebar, a lawyer from the KPMG accounting firm and an accountant as temporary managers.

The court selected the three after consulting with the Ministry of Economic Affairs and decided they were professional and skilled in company organizational affairs, a court spokesman said yesterday.

A self-help association formed by suppliers to the Idee Department Store (衣蝶百貨), a sister company of the China Rebar, had proposed that Wang Lin-mei (王令楣), general manager of both Idee and China Rebar, be appointed as China Rebar's temporary manager on the basis that she best knows what is needed and is most able to stabilize the company's operations.

But the court rejected the association's proposal as Wang herself is suspected of diverting Rebar's funds and is free only due to a NT$8 million (US$243,000) bail release, the spokesman said.

The Company Act (公司法) stipulates that when a company's board of directors is unable to function and such a situation is likely to cause damage to the company, the court can appoint temporary managers at the petition of interested parties, or the prosecution, to exercise the functions of the chairman and the board.

The court's ruling came as a response to a petition by the district prosecutor's office.