Wealthy Shareholder Innolux Refuses to Bailout Chi Mei

The creditor banks for Chi Mei Lighting Technology Corporation are demanding the company’s shareholder groups like Innolux Corportation and Chi Mei Corporation to repay the company’s debt. However, Innolux Corportation’s response was that the responsibility for resolving the debt was solely that of the creditor banks and that all Chi Mei employees are welcome to work at Innolux. Chi Mei Corp only expressed regret over the situation.    

Chi Mei Lighting Technology Corp has a debt of NT$5.6 billion. Creditor banks for the company include Bank of Taiwan, Mega International Commercial Bank, Shin Kong Bank, Taiwan Cooperative Bank, Bank COTA Commercial Bank, and more.

Way before the merger of Chi Mei Corp and Innolux Corp, LED chip manufacturer Chi Mei Technology Corp was established in 2006. Before the big financial crisis in 2007, the panel technology industry was doing well, including a growing demand for LED panel backlight modules. However, afterwards the panel industry cooled down, putting Chi Mei Lighting into debt crisis. After the merger with Innolux, Chi Mei strived to better the financial balance of the company. Although the company was able to turn itself around 1Q of this year, it still was not able to overcome the deficit and ultimately went out of business.   

Innolux Corp and Chi Mei Corp own a combined 60% stake in Chi Mei Lighting, 33.9% of which belongs to Innolux.

With Innolux Corp and Chi Mei Corp strictly seeing themselves as shareholders with no part of the company’s management, they believe that the creditor banks should use Chi Mei Lighting’s assets to resolve the outstanding loans. The banks fear their only solution is to either find a buyer for Chi Mei Lighting or auction off the company’s assets.
 

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

Tokushima, Japan - 6 March 2024: Nichia, the world's largest LED manufacturer and inventor of the high-brightness blue and white LED, has started mass production of the new UV-B (308nm) and UV-A (330nm) LEDs in its popular 434 Series packa... READ MORE

New XLamp® S Line LEDs enhance growth, last longer, lower energy costs Horticulture and other forms of agricultural lighting require application-tuned ratios of spectral content, high efficacy and long lifetimes. Whether you are interested... READ MORE