Taiwan Makes It Official – CPT is Bankrupt
While it is hard to believe that it took the Taiwan Taoyuan District Court essentially three years to make a decision, said court has ruled that former panel producer Chunghwa Picture Tubes (defunct) is bankrupt. CPT, a once robust panel producer generating over $500m in quarterly sales back in the late 2000’s, found itself unable to compete, with sales down to $13m/q by the end of 2018, along with a heavy debt burden incurred during the construction of the company’s 2nd G6 LCD fab and its investment in a Chinese subsidiary.
According to court documents CPT had total liabilities at the end of 2021 totaling $1.372b US which far exceeded the value of its assets (not provided but were ~$772m at the end of 2019), and the court sponsored auction of the company’s plants and associated building, which was priced at $206.6m (base price) received no offers.
The court has appointed an accountant and two lawyers to oversee the bankruptcy proceedings with a creditor’s meeting scheduled for the end of October. The company’s largest shareholder is Tatung (2371.TT), a Taiwan-based manufacturer of PCs LCD TVs, and appliances, holds a 39.7% stake in CPT, along with eChem Solutions (4749.TT) and a variety of smaller stock and note holders, a sad demise for a company that at one time held an 8% share of the global small panel LCD market.
According to court documents CPT had total liabilities at the end of 2021 totaling $1.372b US which far exceeded the value of its assets (not provided but were ~$772m at the end of 2019), and the court sponsored auction of the company’s plants and associated building, which was priced at $206.6m (base price) received no offers.
The court has appointed an accountant and two lawyers to oversee the bankruptcy proceedings with a creditor’s meeting scheduled for the end of October. The company’s largest shareholder is Tatung (2371.TT), a Taiwan-based manufacturer of PCs LCD TVs, and appliances, holds a 39.7% stake in CPT, along with eChem Solutions (4749.TT) and a variety of smaller stock and note holders, a sad demise for a company that at one time held an 8% share of the global small panel LCD market.
Former CPT Headquarters - Source: Focus Taiwan
RSS Feed