Polarizer maker Cheng Mei Materials Technology has requested debt negotiations with creditor banks as its manufacturing has been stymied on account of an absence of revolving funds, in response to an organization announcement.
The creditor banks had just lately frozen Cheng Mei’s credit score strains on account of a latest upheaval on the firm’s administration crew, making it unable to problem letter of credit score for the purchases of wanted supplies and to pay its financial institution loans on schedule, in response to firm chairman Ho Chao-yang.
Excluding due mortgage funds, Cheng Mei wants a complete of NT$900 million to NT$1 billion value of working funds a month, in response to firm CFO Lien Wei-chung.
However, the corporate’s whole stability at banks will fall to about NT$three billion by the tip of March 2019, a low stage which shall be unable to satisfy its short-term monetary wants, Lien added.
Judging that Cheng Mei presently has a backlog of orders readily available, Ho stated that the corporate has confidence to settle its debt problem so long as the creditor banks might resume its credit score line and prolong the grace interval for its mortgage funds.
Cheng Mei will maintain a provisional shareholders assembly on April 26 to settle the dispute of its administration, which can enable the corporate to restructure its group and to proceed to deal with its core polarizer enterprise, Ho stated.
Cheng Mei’s monetary woes comes at a time when some polarizer suppliers are mulling to boost their quotes to replicate tight provides, however a failure of debt negotiations between Cheng Mei and creditor banks might drive the polarizer maker to droop operations and due to this fact additional complicate the availability problem, in response to business sources.
Cheng Mei chairman Ho Chao-yang (middle) vows to settle debt points
Photo: Rebecca Kuo, Digitimes, May 2019
