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MOEA announces it will postpone joint venture with UAE

The Ministry of Economic Affairs (MOEA) announced late last night that it would postpone its proposal to sell an 80 percent stake in the debt-ridden Sino Swearingen Aircraft Corp (SSAC, 華揚史威靈) to a venture capital firm in the United Arab Emirates (UAE).

The ministry said it would not deal with the case until it officially reports to the Legislative Yuan.

REPORT

"The ministry's report to the Legislative Yuan will be submitted before the end of March, but it will be after the presidential election," Woody Duh (杜紫軍), chief executive officer of the Yao-Hwa Glass Co management commission, told reporters in the ministry's press room yesterday.

The presidential election will take place on March 22.

"There are only three options possible in the SSAC case. One is to seek investors to form a joint venture while the other is to face the risk of bankruptcy. The other is for the government to provide funding. The ministry will evaluate the potential losses involved in both options and report its assessment to the Legislative Yuan," Duh said.

SITUATION

It has been estimated that SSAC's operating capital will only last until next month, he said.

On Tuesday, the ministry said SSAC had negative net assets of US$60 million.

"Four investors have been in talks with the government regarding forming a joint venture since November, but the venture capital firm in the UAE is the only one that invested US$10 million," Duh said.
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