Papermaking conglomerate YFY Inc (永豐餘控股) yesterday said that its board has approved a request that Sun Power Development and Construction Co (三寶建設) repay US$12.29 million within one-and-a-half months after convertible bonds issued by its subsidiary Giant Crystal Universal Development Inc defaulted.
YFY subscribed to US$8.5 million of convertible bonds issued by Giant Crystal, which matured on June 20 after a one-year extension, the company said yesterday in a statement filed with the Taiwan Stock Exchange.
It has requested Sun Power repay US$12.29 million of the convertible bonds before Aug. 15, including interest charged at a rate of 10 percent in the extension period, YFY said in the filing.
Sun Power has signed an agreement to pay back the debt, YFT said.
Sun Power also added one more piece of real-estate collateral for the repayment, as requested by YFY, the papermaker said.
Sun Power’s planned sale of a commercial building in Shanghai has been suspended, which caused the construction company to default on the bond, YFY said.
The default is related to a series of loan scandals involving SinoPac Financial Holdings Co (永豐金控), which is accused of extending more than NT$5 billion (US$164.3 million) in questionable loans to Sun Power.
SinoPac Financial and YFY were founded by the family of former SinoPac chairman Ho Shou-chuan (何壽川), who was detained on June 18 suspicion of violating the Securities and Exchange Act (證券交易法).
Without sufficient collateral and proper authorization, the loans transferred between shell companies owned by Sun Power and SinoPac Financial have raised questions over the group’s regulatory compliance, the Financial Supervisory Commission said.
The ongoing investigation would not affect its operations, YFY said in a statement.
Ho still serves as director of the firm’s board.
SUPPLY HICCUPS: Poor manufacturing yields at Apple’s overseas suppliers have caused at least one maker of its new MiniLED displays to pause production, sources said The next-generation display destined to be a highlight of Apple Inc’s upcoming top-tier iPad Pro is facing production issues that could lead to short initial supplies of the new device, people familiar with the matter said. The Cupertino, California-based tech giant plans to showcase a new MiniLED display technology in the 12.9-inch iPad Pro set to be announced as early as the second half of this month. However, the firm’s overseas suppliers are dealing with poor manufacturing yields, the people who asked not to be named discussing sensitive matters said. At least one of the MiniLED makers has had to pause production as
RETAIL BANKING EXIT: Clients are concerned whether their rights would be protected, while employees were caught by surprise as the bank had just upgraded its services Citibank Taiwan Ltd (花旗台灣) yesterday said that credit card clients could continue using their cards as operations would continue normally until it sells its consumer banking business. As of February, the bank had 2.86 million credit cards in circulation in Taiwan, of which 2.17 million had been used in the past six months, ranking it sixth among all banks, data from the Financial Supervisory Commission showed. Credit card spending by Citibank clients totaled NT$15.66 billion (US$552.6 million) in February, also ranking sixth among banks in Taiwan. Citibank was the only foreign bank that made it into the top six. Customers should not
END OF AN ERA: The Boeing 747-400 jumbo jets have served the airline well, but new-generation aircraft are more fuel-efficient, CAL chairman Hsieh Shih-chien said China Airlines Ltd (CAL, 華航) yesterday bid farewell to its last four Boeing 747-400 planes, ending the era of the “Queen of the Skies” at the airline. CAL has since 1975 operated a total of 29 747 series aircraft manufactured by Boeing Co. In 1990, it started receiving delivery of 19 747-400 jumbo jets, with the last one, the B-18215, delivered in 2005, it said. The B-18215 was the last of the passenger model produced by Boeing, making the 16-year-old aircraft the world’s youngest 747-400, CAL chairman Hsieh Shih-chien (謝世謙) told an event to bid farewell to the planes at Taiwan Taoyuan
DIVERSE SUPPLY: TSMC chairman Mark Liu said the firm’s US$12 billion investment in Arizona would succeed with continued bipartisan support from the US Congress Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, on Monday took part in a virtual White House summit about a global semiconductor shortage and Washington’s plans to strengthen US supply chains. The Hsinchu-based company was among 19 firms, including fellow chipmakers Samsung Electronics Co, GlobalFoundries Inc and Intel Corp, that attended the summit hosted by US National Security Adviser Jake Sullivan, US National Economic Council Director Brian Deese and US Secretary of Commerce Gina Raimondo. US President Joe Biden told executives in the meeting that there is bipartisan support in the US Congress for efforts to strengthen the US
RSS