Thu, Feb 12, 2009 - Page 12 News List

ProMOS facing investors’ call demands

By Chinmei Sung and Tom Kohn  /  BLOOMBERG

ProMOS Technologies Inc (茂德科技), Taiwan’s most unprofitable maker of computer-memory chips, received call demands from more than 90 percent of investors in its five-year convertible bonds, a person familiar with the matter said.

Bondholders want Hsinchu-based ProMOS to buy back its notes this week, said the person, who asked not to be identified because the negotiations are private.

They can exercise a put option to sell the bonds back to the company on Saturday, the second anniversary of the US$350 million issues.

ProMOS said yesterday that the lenders haven’t yet agreed to its request for NT$5 billion (US$147 million) loans that it would use to repay debt.

It applied for a loan last month from banks lead by Bank of Taiwan (臺灣銀行) to help it repay debt, spokesman Ben Tseng (曾邦助) said in a phone interview. The company was still waiting to hear back from the lenders, he said.

Bank of Taiwan remained mum yesterday on the loan issue.

Bank spokesman Tsai Fu-chi (蔡富吉) said there had been no headway regarding ProMOS and he considered it wise to avoid comments that might affect a listed company’s stock value.

ProMOS raised about NT$4 billion in the past month selling factory equipment and land, its stock exchange filings show.

Additional reporting by Crystal Hsu

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