Shares of cash-strapped ProMOS Technologies Inc (茂德科技) rallied close to the 7 percent daily limit yesterday amid speculation that it could obtain new credit from a major lender less than two weeks before its US$330 million corporate bonds reach maturity.
Shares of the nation’s third-largest computer memory chipmaker jumped 6.62 percent to end at NT$1.61, recuperating from losses in early trading yesterday.
The Bank of Taiwan (台灣銀行), in which the government has a controlling stake, said yesterday it did not rule out giving further financial support to ProMOS, the Central News Agency reported yesterday, citing bank chairwoman Susan Chang (張秀蓮).
ProMOS is scheduled to repay US$330 million in corporate bonds when they mature on Feb. 14.
“We have sold some equipment to resolve our financial problem. We are still aggressively seeking ways to address the shortfall,” the Hsinchu-based ProMOS said in a filing to the Taiwan Stock Exchange yesterday.
ProMOS raised about NT$3.39 billion (US$100.4 million) by selling equipment and a facility in December and last month.
The Bank of Taiwan and Taiwan Cooperative Bank (合作金庫銀行) are two of the major banks that have provided ProMOS with syndicated loans totaling NT$63.7 billion from 2003 through 2007. The proceeds were used to finance new factories.
Chang, however, said ProMOS would have to come up with a practical bailout proposal, CNA said.
The government has already rejected a bailout proposal filed by ProMOS and Elpida Memory Inc, Japan’s biggest memory chipmaker, on Jan. 7. The chipmakers have yet to make a new proposal.
In a last-ditch attempt to resolve the pressing financial problems faced by ProMOS, government officials met the chipmaker’s creditors late last month, but no final solution was found.
Shares of the nation’s two biggest computer memory chipmakers, Powerchip Semiconductor Corp (力晶半導體) and Nanya Technology Corp (南亞科技), also rose 6.84 percent and 6.94 percent to NT$3.28 and NT$6.01 respectively, as chip supply may fall fast after Munich, Germany-based rival Qimonda AG filed for insolvency protection last Tuesday.
The spot price of DDR2 1GB 128Mx8 eTT rose 25 percent to an average US$1.2 per unit yesterday, after trading resumed following the Lunar New Year holiday.
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