Wang family retains control of China Rebar

China Rebar Co (中國力霸) held a provisional shareholder meeting yesterday and elected president Wang Lin-mei (王令楣) as the new chairwoman of the insolvent company.

The meeting also elected seven directors to the board and two supervisors, according to a filing with the Taiwan Stock Exchange.

Wang is a daughter of fugitive Rebar Group chairman Wang You-theng (王又曾). Prosecutors have accused her of playing a major role in the hollowing out of China Rebar and she is out on bail.

Wang Lin-mei will remain president of China Rebar as well as president of Idee Department Store (衣蝶百貨), another subsidiary of the troubled Rebar Asia Pacific Group (力霸亞太企業集團).

CREDITORS UNHAPPY

The election results worried both investors and creditor banks, as the new directors are considered part of the Wang clan, said Michael Chao (趙順生), director of the Securities and Futures Investors Protection Center's legal section.

Chao, who attended yesterday's closed-door meeting, reportedly expressed his dissatisfaction with the results during the meeting.

He pressured the attendees to pass a resolution to examine what civil and criminal liabilities the former directors of the board should be held responsible for in connection with the alleged embezzlement and other corporate wrongdoings that caused the company to seek insolvency protection in late December.

On Jan. 10, prosecutors and investigators raided Rebar Group headquarters in Taipei, as well as those of its subsidiaries, including China Rebar, Chia Hsin Food & Synthetic Fiber Co (嘉新食品化纖), the Chinese Bank (中華銀行) and Great Chinese Bills Finance Corp (力華票券).

China Rebar's insolvency protection was approved by the Taipei District Court in January.

ELECTION PROCESS

After the meeting, Wang Lin-mei said the election was carried out fairly and had been overseen by the temporary insolvency administrators appointed by the court in February

After the board reshuffle, the insolvency administrators were removed from their positions.

Wang said the elected directors hold important positions in China Rebar, and play a vital role in bailing out the company.

"We hope the court will approve Rebar's restructuring plan," she said.

Mega International Commercial Bank (兆豐國際商銀), China Rebar's major creditor, opposed the company's restructuring plan in January. It demanded China Rebar withdraw the proposal and draw up a new one.

RESTRUCTURING

One insolvency administrator, Shen Wei-yang (沈維揚), said the court has not reached a final decision on the company's restructuring plan, because no accountants are willing to issue certified documents on the company.

But Wang Lin-mei said China Rebar will try to negotiate with its creditor banks and hoped to reach agreement about repaying its debts before withdrawing its restructuring plan.