Abit reaches tentative agreement with creditor banksThu, Jan 20, 2005 - 11:03 PM
Believe it or not today ABIT stocks went up! For the first time in over a week ABIT stocks regain some of the ground lost over the past couple months. ABIT stock rose to $1.59, which is a +6.71% net gain on the overall stock price. One of the factors as to why the stock price went up may be due to the news story below.
“Abit Computer has reached a tentative agreement with its creditor banks, allowing it to use its funds deposited at the banks as well as access to banks? credit lines available to the company, sources at the motherboard maker said yesterday.
Abit?s deposits and its credit lines, or the amount of short-term revolving funds the company can get from banks with its credit, which totaled NT$4.7 billion, were frozen by its creditor banks after the Taiwan Stock Exchange (TSE) downgraded Abit stock to requiring full-delivery in mid-December, amid allegations of fraud at the motherboard maker.
Abit had total short-term assets equivalent to NT$1.65 billion in cash at the end of November last year, and part of these assets was deposited at the banks, according to data released by Abit. However, the company did not specify how much cash had been frozen by its creditor banks.”