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.
Three Taiwanese airlines have prohibited passengers from packing Bluetooth earbuds and their charger cases in checked luggage. EVA Air and Uni Air said that Bluetooth earbuds and charger cases are categorized as portable electronic devices, which should be switched off if they are placed in checked luggage based on international aviation safety regulations. They must not be in standby or sleep mode. However, as charging would continue when earbuds are placed in the charger cases, which would contravene international aviation regulations, their cases must be carried as hand luggage, they said. Tigerair Taiwan said that earbud charger cases are equipped
Foreign travelers entering Taiwan on a short layover via Taiwan Taoyuan International Airport are receiving NT$600 gift vouchers from yesterday, the Tourism Administration said, adding that it hopes the incentive would boost tourism consumption at the airport. The program, which allows travelers holding non-Taiwan passports who enter the country during a layover of up to 24 hours to claim a voucher, aims to promote attractions at the airport, the agency said in a statement on Friday. To participate, travelers must sign up on the campaign Web site, the agency said. They can then present their passport and boarding pass for their connecting international
Temperatures in northern Taiwan are forecast to reach as high as 30°C today, as an ongoing northeasterly seasonal wind system weakens, the Central Weather Administration (CWA) said. CWA forecaster Tseng Chao-cheng (曾昭誠) said yesterday that with the seasonal wind system weakening, warmer easterly winds would boost the temperature today. Daytime temperatures in northern Taiwan and Yilan County are expected to range from 28°C to 30°C today, up about 3°C from yesterday, Tseng said. According to the CWA, temperature highs in central and southern Taiwan could stay stable. However, the weather is expected to turn cooler starting tonight as the northeasterly wind system strengthens again
Taiwan sweltered through its hottest October on record, the Central Weather Administration (CWA) said yesterday, the latest in a string of global temperature records. The main island endured its highest average temperature since 1950, CWA forecaster Liu Pei-teng said. Temperatures the world over have soared in recent years as human-induced climate change contributes to ever more erratic weather patterns. Taiwan’s average temperature was 27.381°C as of Thursday, Liu said. Liu said the average could slip 0.1°C by the end of yesterday, but it would still be higher than the previous record of 27.009°C in 2016. "The temperature only started lowering around Oct. 18 or 19
RSS