Alexa
  • Directory of Taiwan

Court verdict puts further pressure on Ting Hsin

Court verdict puts further pressure on Ting Hsin

Taipei, Jan. 9 (CNA) The scandal-plagued Ting Hsin International Group came under further pressure Friday when the Taipei District Court ruled that its real estate development arm would have to make good on a promissory note issued to secure a syndicated loan. The promissory note for NT$7 billion (US$219 million) was signed by Ting Lu Development Co. in May 2013 to cover a loan for a development project from a consortium headed by state-run Mega International Commercial Bank. Ting Lu paid back NT$500 million of the NT$7 billion loan but was unable to pay back the balance by the Dec. 31, 2014 deadline, triggering legal action by the loan syndicate, which filed two petitions at the Taipei District Court. One motion, which was rejected Friday, requested the seizure of Ting Lu property worth an estimated NT$1 billion. The other asked that the promissory note be enforced, which in effect would allow the creditor banks to auction off the property Ting Lu put up as collateral -- a 49,500-square meter plot of land located along the Taipei Metro's Xinzhuang Line in Sanchong, New Taipei. They expect to auction the land by the middle of the year at the earliest. The land was purchased in 2010 by Wei Chuan Foods Corp. -- another Ting Hsin subsidiary -- for approximately NT$10.1 billion, before it was resold to Ting Lu, in which Wei Chuan holds a 51 percent stake. The Sanchong land was estimated to be worth NT$22 billion when Ting Lu put it up as collateral for the syndicated loan, according to the court. The Ting Hsin Group has been financially squeezed since it became embroiled in an edible oil scandal in October, when several of its 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 conglomerate had hoped to pay off the amount due at the end of December with a new line of credit, but banks balked after the food safety scandal erupted. (By Tian Yu-ping, Liu Shih-yi and Elizabeth Hsu)


Updated : 2021-09-17 09:11 GMT+08:00