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Creditors to take action after Ting Lu defaults on loan

Creditors to take action after Ting Lu defaults on loan

Taipei, Dec. 31 (CNA) Creditor banks of Ting Lu Development Co., a subsidiary of the scandal-plagued Ting Hsin International Group, were to meet later Wednesday after Ting Lu failed to pay back NT$6.5 billion (US$204.6 million) of a syndicated loan by the deadline. Ting Lu, the real estate subsidiary of the Ting Hsin International Group, failed to come up with the payment by 3:30 p.m. Wednesday, as had been requested by the creditor banks making up the loan syndicate. Ting Lu had asked for a six-month extension of the deadline on Monday, but the request was rejected by the creditor banks. The banks are now likely to auction off a parcel of land in Sanchong District in New Taipei owned by Wei Chuan Foods Corp., another subsidiary of the Ting Hsin Group, which was listed among the assets serving as collateral for the syndicated loan. The banks expect the land to be auctioned in mid-2015 after completing the necessary legal procedures. Vice Finance Minister Wu Tang-chieh earlier estimated the value of the land at around NT$20 billion, which would cover the amount owed. The Ting Hsin Group has been financially squeezed since it was embroiled in an edible oil scandal in October, in which subsidiaries were found to be making their oils with ingredients not fit for human consumption. Outraged consumer groups led a boycott of Ting Hsin's products and interests, and its other businesses were scrutinized, leading banks to tighten their loan terms to the group.
The group had originally hoped for a new syndicated loans of NT$18 billion to pay of the loan and engage in land development, but the loan request was rejected after the edible oil scandal erupted. (By Tien Yu-pin, Han Ting-ting, Ted Chen and Lilian Wu)


Updated : 2021-05-16 20:11 GMT+08:00