Court approves Fitel restructuring plans
First International Telecom (Fitel), Taiwan's only operator of low-power PHS (personal handy-phone system) mobile communication services and a WiMAX licensee for the northern region of Taiwan, on March 5 announced that its request for corporate turnaround filed with a local court has been approved.
The first step in the turnaround is for Fitel to downsize its current paid-in capital of NT$4.5 billion (US$132 million) by NT$1.8 billion to cover cumulative operating losses and then raise additional capital of around NT$2.4 billion mainly through issuing new shares, Fitel pointed out.
With total assets valued at about NT$8 billion, Fitel has total debts of NT$5-6 billion to be liquidated. Its debtors include banks, PHS handset vendors, and COE (central office equipment) suppliers, the company indicated.
Fitel will meet with debtors, shareholders, and other concerned parties to discuss solutions in coordination with agents appointed by the court, the company said.
The first step in the turnaround is for Fitel to downsize its current paid-in capital of NT$4.5 billion (US$132 million) by NT$1.8 billion to cover cumulative operating losses and then raise additional capital of around NT$2.4 billion mainly through issuing new shares, Fitel pointed out.
With total assets valued at about NT$8 billion, Fitel has total debts of NT$5-6 billion to be liquidated. Its debtors include banks, PHS handset vendors, and COE (central office equipment) suppliers, the company indicated.
Fitel will meet with debtors, shareholders, and other concerned parties to discuss solutions in coordination with agents appointed by the court, the company said.
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