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Asia Pacific urges TRA to take action

Financially troubled Asia Pacific Telecom Co (亞太電信) yesterday urged creditor Taiwan Railway Administration (TRA, 台鐵) to withdraw an injunction to freeze NT$60 million (US$1.86 million) in bank accounts to save the mobile operator from collapse.

The move from the state-run TRA, which is also a major shareholder in Asia Pacific, has triggered chain reactions as creditor banks including Chinatrust Commercial Bank (中國信託) have requested loans worth of NT$300 million be paid back immediately, acting chairman Huang Chien-ming (黃千明) told a press conference.

"The TRA's move will paralyze the operation of Asia Pacific as the company will be in an extremely difficult financial situation without new cash coming in," Huang said.

The creditor banks also froze the phone company's accounts in order to ensure the recovery of loans.

Asia Pacific would need to pay around NT$1.2 billion including employee payrolls and payments for purchase of mobile phones by the end of this month, Huang said.

If the TRA promised to withdraw the injunction and give financial support, Huang said he would step down.

Huang was nominated by shareholders representing 47 percent of individual investors to succeed outgoing Springfield Lai (賴春田) last week.

But, at the same time, the TRA and other shareholders with close links to the government have named Sophia Chiu (邱純枝), vice president of TECO Electric and Machinery Co (東元電機), to lead the telecom company temporarily.

TECO has a representative on the 33-seat board.

Separately, Asia Pacific yesterday filed a lawsuit against the TRA accusing the company of ignoring its responsibilities as a major shareholder and allowing a massive embezzlement by former chairwoman Wang Chin She-ying (王金世英) and her family.
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