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Asia Pacific planning recapitalization

The debt-ridden Asia Pacific Broadband Telecom Co (APBT, 亞太固網寬頻) plans to reduce its capital by about 60 percent to improve its financial structure, a company executive said yesterday.

The company will propose slashing as much as NT$40.6 billion from its total of NT$65.6 billion at the board meeting on July 30. The reduction would make it possible for the company to break even next June, chairman Springfield Lai (賴春田) said.

APBT would also issue new shares to raise NT$30 billion for future expansion, Lai said.

As part of the fund-raising plan, the company would seek viable strategic partners among overseas companies via private placement -- including US mobile operator Sprint Nextel Corp, Intel Corp and broadband service provider Clearwire Corp -- to tap into the WiMAX market, Lai said.

The company planned to complete its recapitalization plan near the end of the year at the earliest, Lai said.

Separately, to speed up recovery of capital allegedly embezzled by the company's former executives, APBT yesterday lodged a complaint with the Taipei district court, requesting that judges declare Wang You-theng (王又曾) and eight members of his family bankrupt.

Lai said that the Wangs had misappropriated NT$27.2 billion of the company's funds via more than 66 affiliates of Wang's Rebar Group (力霸集團).

Unaudited loss amounted to NT$1.5-1.8 billion in the first six months of the year, in addition to accumulated debts totaling around NT$10 billion, Lai said.
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