ABIT cuts debts by selling properties, but trouble remains
ABIT was the enthusiast board of choice from the late 1990’s to 2002, but it was around this time period things started to get funky. ABIT has sold off properties to get out of debt, but then increased their investments in other companies even though they are still in debt.
At a provisional meeting on December 23, shareholders of financially troubled Abit Computer approved the company?s plan to sell its office building in Taipei to Deutsche Bank for NT$1.7 billion. The company will use the entire amount to retire part of its bank loans and reduce its total debts to NT$1.9-2.0 billion (US$57-60 million), said company chairman Remond Lu. Taiwan?s securities regulatory agency has requested Abit to resubmit its financial statements for all of 2003, 2004 and part of 2005 to the TSE by February 2006. Abit will be delisted from the TSE if it fails to comply with the request. Trading of Abit shares has been suspended since mid-September this year.
Comments are closed.