Fri, Jan 23, 2015 - Page 13 News List

Ting Hsin raises NT$6.5bn overseas to help Ting Lu repay syndicated loan

CREDIT:Ting Lu had taken out the loan to finance the purchase and development of an industrial plot in New Taipei City’s Sanchong into a residential complex

By Amy Su and Crystal Hsu  /  Staff reporters

Ting Hsin International Group (頂新國際集團) yesterday said it had helped group member Ting Lu Development Co (頂率開發) repay a syndicated loan of NT$6.5 billion (US$206.28 million) to creditor banks led by Mega International Commercial Bank (兆豐國際商銀).

“To show our respect to the lenders and avoid wasting judicial resources, the group raised NT$6.5 billion overseas to help Ting Lu repay the debt that had expired [at the end of last year],” Ting Hsin said in a statement.

The group, which includes Wei Chuan Foods Corp (味全食品) in Taiwan and instant-noodle brand Master Kong (康師傅) in China, is owned by the Wei (魏) family.

FOOD SCANDALS

It was embroiled in a series of food safety scandals last year, which led to consumers boycotting the group’s products and brands in Taiwan, as well as local financial institutions freezing credit to the food maker and its affiliates.

Ting Hsin said the funds raised all came from the group’s overseas units, rather than the Wei family.

Mega International Commercial Bank confirmed that Ting Lu had paid the syndicated loan, which the latter acquired to finance the purchase and development of an industrial land plot in New Taipei City’s Sanchong District (三重).

CREDIT FREEZE

Creditor banks decided not to extend the loan, which matured on Dec. 27, in line with government recommendations to freeze credit for firms involved in activities that are harmful to human health and the environment.

The developer had planned to turn the plot into a residential complex, but would have difficulty securing construction funding due to Ting Hsin’s recurring involvement in food safety scandals.

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