Radio Taiwan International
Date: 2017-12-04

Taiwan’s Navy could terminate a contract with the nation’s largest private shipbuilder – Ching Fu

Navy Command Headquarters Chief of Staff Lee Tsung-hsiao (CNA)

Shipbuilding Co. – if the company does not meet an extended deadline for making good on a payment. The Navy says it would move to terminate the contract on December 9, the day after payment is due, if the company does not comply.

That was the word from Navy Command Headquarters Chief of Staff Lee Tsung-hsiao, who was answering questions at the legislature on Monday.

The struggling shipbuilder ran into trouble borrowing NT$20.5 billion (more than US$680 million) from a group of Taiwanese banks in order to fund a contract to build six minesweepers for the navy. But the banks halted the loans after the Kaohsiung District Prosecutors’ Office launched an investigation into Ching Fu’s activities. The banks then filed a criminal lawsuit against Ching Fu in October for breach of contract.    [FULL  STORY]