Creditors of Formosa Tools Co yesterday asked the Ministry of Justice to investigate allegations of bankruptcy fraud and illegal transfer of assets involving the Changhua County company.
The firm reportedly defaulted on bank loans totaling NT$587 million (US$20.52 million) and owes NT$388 million to 194 supplier companies, who have formed a group for Formosa Tools’ creditors and filed a complaint with the Changhua branch of the Ministry of Justice’s Investigation Bureau.
The group said that there were financial irregularities in Formosa Tools’ bankruptcy filings.
One creditor surnamed Lin (林) said that Formosa Tools vice president Hsu Wei-chun (許維鈞) had moved most of the company’s production materials to its Vietnamese plant before filing for bankruptcy.
Hsu had allegedly told one supplier that his company’s main production would be based in Vietnam, Lin said.
His company had a business relationship with Hsu for more than 20 years until Hsu encountered financial difficulties last year, Lin added.
Lin said that Formosa Tools had defaulted on NT$587.4 million in bank loans — NT$250.9 million from Taiwan Cooperative Bank, NT$133 million from Bank SinoPac, NT$56.7 million from Cathay United Bank, NT$90 million from Shanghai Commercial and Savings Bank, NT$36 million from Sunny Bank and NT$20.8 million from Fina Finance and Trading.
Hsu and his brother, Hsu Ting-chin (許廷鑫), have obtained US citizenship, making it difficult for creditors to recover their money, Lin said.
Hsu Wei-chun refuted the allegations.
“It is not true that I have fled Taiwan to avoid repaying debts. I am still in Taiwan and running the company, and making every effort to settle this financial situation,” Hsu Wei-chun told reporters yesterday.
Formosa Tools mainly exports gardening tools and household implements, but the COVID-19 pandemic last year led to increases in the costs of maritime shipping, he said, adding that he had problems booking cargo ships, especially in the second half of last year.
“My company could not ship our products, which led to our cash flow problems late last year, and now I am negotiating with banks to restructure loan repayment plans, and also working to settle debts with supplier companies,” he said.
Hsu Wei-chun and his brother have headed Democratic Progressive Party-affiliated branch offices for overseas Taiwanese in the US, and have been supporters of the party for many years, local media reported.
Changhua residents familiar with the brothers said that they campaign for the party, but had never run for office.
FUKUOKA SITUATION: Japanese media reported that the pathogen is expected to be identified by the summer, while the CDC downplayed the idea that it was hMPV A “mysterious cold-like illness” reported in Japan’s Fukuoka Prefecture does not seem to be a new disease, but Japanese authorities have been asked about the situation, the Centers for Disease Control (CDC) said yesterday. The Fukuoka Prefectural Medical Association on Wednesday told a news conference that a “mystery cold” that has become a hot topic on social media is “highly likely to be caused by some kind of viral infection,” Japan’s KBC News reported. “Many people are experiencing symptoms starting with a sore throat, followed by a runny nose, phlegm and a severe cough,” KBC News reported, citing association officials. Health authorities are
Nvidia Corp CEO Jensen Huang (黃仁勳) arrived in Taiwan yesterday ahead of upcoming AI and technology events, saying he plans to meet with clients and Taiwan Semiconductor Manufacturing Co Chairman C.C. Wei (魏哲家) during his visit. After landing at Taipei Songshan Airport, Huang posed for photos with fans and handed out Yakult drinks to reporters and supporters waiting at the scene, saying he has “a lot to do” during the trip. Asked about reports that Nvidia’s planned headquarters site in Taipei’s Beitou Shilin Technology Park could break ground on May 27, Huang said that if the company holds an event, he would
Carrefour Taiwan is to begin using a new name from the start of July, but it cannot divulge the name until then, the chairman of the supermarket chain's parent company said today. President Chain Store Co chairman Lo Chih-hsien (羅智先) was asked by reporters after a shareholders' meeting to confirm whether the company has settled on a new name for the supermarket brand. In March, the government-registered name of two Carrefour Taiwan branches was quietly changed to "Le Chia Kang" (樂家康) in Chinese, raising speculation that has been selected as the name. Lo said that because of local regulations and contractual obligations, the
The Philippines would likely be involved in any conflict over Taiwan due to its proximity to the democracy claimed by China, President Ferdinand Marcos Jr said, reiterating a stance that risks angering Beijing. “In the Philippines, we do not have a choice because Taiwan is so close to the Philippines and we have almost 200,000 Filipino nationals living and working in Taiwan,” Marcos said in an interview with Japanese media in Manila on Monday. The Philippine leader’s comments come ahead of a state visit to Japan next week, where he is to meet with Japanese Prime Minister Sanae Takaichi to discuss security
RSS