Chunghwa Picture Tubes Ltd (CPT, 中華映管) said it is to resume operations at its two fabs in Taiwan after its key industrial gas supplier, Linde LienHwa Industrial Gases Co (聯華林德), restored supply yesterday.
Production stalled for five days after the company applied to undergo restructuring.
Linde LienHwa cut off gas supply after CPT’s filing stoked fears of more defaults on payments to its component and raw material suppliers.
The disruption almost immediately paralyzed operations at the fabs, although CPT has sufficient component inventory to keep its production lines running for about two weeks.
“Our factories came to a halt as there is no way to stockpile gases like other components or raw materials,” an investor relations and public communications official said by telephone. “Linde LienHwa began supplying gas in the afternoon.”
CPT has not reached any breakthroughs in negotiating with its creditors, the official said, adding that company executives met with representatives from local banks on Monday, but did not schedule another meeting.
The beleaguered LCD panel maker as of Nov. 30 owed NT$12.7 billion (US$410.98 million) to lenders led by state-run Bank of Taiwan (台灣銀行) and King’s Taiwan Bank (京城銀行).
Preparations to restart operations at the fabs in Taoyuan’s Longtan (龍潭) and Yangmei (楊梅) districts started yesterday, CPT said in a statement to the Taiwan Stock Exchange, adding that operations are to resume within 48 hours.
All employees worked normally yesterday, the statement said.
CPT said it is still attempting to garner support in negotiations from suppliers and clients, but no substantial agreements have yet been reached.
Shares of CPT yesterday plummeted 9.2 percent to NT$0.79, below the company’s book value of NT$1.44.
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