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Creditor Banks Plan to Hold Talks Early Next Month

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Core Tip: Taipei, Nov. 19, 2012 (CENS)--Creditor banks plan to hold talks early next month to discuss bailout-extension application recently submitted by the financially struggling P

Taipei, Nov. 19, 2012 (CENS)--Creditor banks plan to hold talks early next month to discuss bailout-extension application recently submitted by the financially struggling PowerChip Semiconductor Corp. (PSC) to the Ministry of Economic Affairs (MOEA).

PSC’s bailout scheme financed by these banks will come due on Dec. 14. Last week, the company submitted an application to the MOEA for extending the scheme, in which the chipmaker still has NT$40.5 billion (US$1.3 billion at US$1:NT$29) in debt. The company has been delisted from Taiwan Stock Exchange because of negative debt/asset ratio.

Industry executives estimated the banks would in principle follow their previous bailout practice for the PSC case except for asking the company to repay at least 10% of the principal of the loan due in 2012 in addition to repaying 10-15% of the principal of the loan to be matured in 2013.

It is understood that PSC has told the banks it will repay around NT$4 billion (US$137.9 million) of the debt by the end of this year by selling part of its machines and its shareholding in Rexchip Electronics Corp.

(by Ken Liu)

 
 
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