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Ting Hsin misses deadline

Ting Hsin misses deadline

TAIPEI (Taiwan News) – Creditor banks were preparing to take action against Ting Hsin International Wednesday as it became clear the embattled food group would not be able to repay a NT$6.5 billion (US$205.5 million) syndicated loan by the afternoon deadline, reports said.
Last Saturday, the four creditor banks decided to turn down a request from the group, which is mired in a host of food adulteration scandals and has been targeted by a consumer boycott, to extend the loan by six months.
Lead bank Mega International Commercial Bank, First Commercial Bank, Chang Hwa Commercial Bank and Taishin International Bank granted the loan to Ting Hsin affiliate Ting Lu Development Co. for a land development project in Sanchung, New Taipei City.
The creditors said Saturday they would start legal action against Ting Hsin if the funds had not been repaid within three working days, or by the end of Wednesday’s banking business at 3:30 p.m.
As it became clear that Ting Hsin was not going to pay, representatives of the banks met again to discuss measures, reports said. They were likely to seek an injunction which might lead to a court auctioning off the Sanchung land and freezing the development company’s bank deposits.
Because of the New Year holiday, the action against Ting Hsin would not start until next Monday, reports said.
The legal action could help the creditors survive potential defaults unscathed because the land is valued at NT$20 billion (US$632.5 million), reports said. The auction was likely to take place sometime around the middle of 2015.
Wei Chuan Foods Corporation, the Ting Hsin affiliate which holds 51 percent of Ting Lu, said that before the Sanchung land was auctioned, it would do its best to again communicate and hold negotiations with the creditor banks.
The group has also been trying to sell its 37-percent stake in Taipei 101, but the emergence of Malaysia’s IOI Properties Group found little enthusiasm from either officials or politicians. The planned deal is under government review for amongst other factors, any Chinese stake.


Updated : 2021-05-15 19:54 GMT+08:00