The Taoyuan District Court on Monday declared flat panel maker Chunghwa Picture Tubes Ltd (CPT, 中華映管) bankrupt after a review of its bankruptcy application filed in September 2019.
In an announcement posted to the Taiwan Stock Exchange, home appliance supplier Tatung Co (大同), CPT’s largest shareholder with a 39.67 percent stake, said the court determined that based on CPT’s total assets, it was unlikely to repay all of its debt, and therefore ruled that the debt-ridden company was bankrupt.
CPT had total liabilities of NT$41.83 billion (US$1.37 billion) as of the end of last year, far exceeding its assets, consisting mostly of property and production equipment, Tatung said.
Photo: CNA
The company did not provide an estimate of the value of those assets.
Local media reported that a court-initiated auction of CPT’s plants and worker dormitories in Taoyuan’s Yangmei District (楊梅), which had a floor price of NT$6.3 billion, failed to attract a buyer.
Tatung said many of its creditors had sought a court order to carry out a compulsory enforcement requiring CPT to repay its debt, which made it impossible for CPT to continue its operations and prompted it to file for bankruptcy under the Company Act (公司法).
Although Tatung did not specify when its creditors pushed the issue, it was presumably in 2019 or earlier because CPT filed for bankruptcy that year and announced on Aug. 29, 2019, that it was laying off all of its 2,100 employees within 60 days.
Following the bankruptcy ruling, the court appointed accountant Ma Kuo-chu (馬國柱) and two lawyers — Liu Hui-chun (劉慧君) and Yang Hsaio-pang (楊曉邦) — to manage CPT’s bankruptcy process, Tatung said.
Tatung said a creditor meeting has been scheduled for Oct. 28 to deal with CPT’s debt repayment issues, and its creditors have been asked to file for loan repayments from Monday next week through Oct. 21.
CPT, a supplier of small and medium-sized flat panels, fell on hard times because of plummeting prices amid a major supply glut, putting tremendous pressure on its bottom line.
The flat-panel maker also booked NT$7.26 billion in losses resulting from its investment in Fuzhou-based CPT Technology (Group) Co (華映科技), only adding to its financial distress.
It was delisted from the Taiwan Stock Exchange on May 13, 2019, after its net worth dipped to negative territory.
Founded in 1971, CPT was once one of the nation’s leading flat-panel makers.
It launched an initial public offering on the Taiwan Stock Exchange on Sept. 17, 2001.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS