Cando Corp (達鴻), which manufactures touchpanels and sensors used in notebook computers, yesterday said it plans to file for restructuring as its attempt to roll over the payment of a syndicated loan of NT$4.3 billion (US$131.43 million) failed.
Cando, which has been struggling to eke out a profit, became the nation’s second touchpanel manufacturer to seek court-approved restructuring, after Wintek Corp (勝華).
“The company has had financial difficulties as business dropped suddenly. If we do not receive a fresh capital injection, the company might have to close down,” Cando said in a filing with the Taiwan Stock Exchange.
Photo: Chen Mei-Ying, Taipei Times
Its creditor banks are unlikely to extend the syndicated loan as its major shareholder, TPK Holding Co (宸鴻) declined to offer financial backing, Cando said in the filing.
The debt-ridden company asked TPK to guarantee the NT$4.3 billion in syndicated loans at the end of last month, but TPK refused.
Cando has to repay the debt by the end of this year, the company said.
TPK — which on Wednesday reported a disappointing third-quarter loss of NT$19.4 billion because of huge asset impairments — has a total exposure of NT$1.6 billion to Cando.
That includes a NT$1 billion loan to Cando and an endorsement of the latter’s corporate bonds of about NT$500 million, according to TPK.
TPK has about 20 percent of Cando’s stock, following its 2011 purchase of AU Optronics Corp’s (友達光電) stake for NT$5.58 billion.
Cando’s board yesterday approved the move to file for restructuring in order to safeguard the interests of shareholders and creditors as well as company employee’s working rights, according to the statement.
Cando has accumulated NT$7.14 billion in liabilities.
The company said it would continue to seek investors in an effort to get its business back on track before the court makes its ruling.
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