Cash-strapped FAT makes token salary payments to staff

Debt-ridden Far Eastern Air Transport (FAT, 遠東航空) said yesterday that it plans to seek a court order to free up frozen assets after it failed to meet its payroll obligations.

"After a morning meeting, management decided to pay each employee NT$10,000 [US$318] yesterday, which is within its authority, and hopes to make up the rest of employees' pay before March 5," company spokesperson Hanson Chang (張有朋) said by telephone.

At the meeting, management also reached a consensus with employee representatives, who promised to make daily operations a priority, Chang said.

However, FAT's union said it was unhappy with the payments and planned to hold a membership conference today to discuss the issue.

Last Friday the Taipei District Court approved FAT's request for court protection, which bars creditors from collecting debts or foreclosing for 90 days.