TransAsia creditors urge restructuring

MOUNTAINS OF DEBT:Local banks have exposure to the airline through numerous loans and convertible bonds maturing next week, which it said could not be claimed

Taipei Times
Date: Nov 24, 2016
By: Crystal Hsu / Staff reporter

TransAsia Airways Corp’s (復興航空) creditor banks yesterday expressed their hope that the 65-year-old airline would restructure its finances instead of dissolving the company.

Financial Supervisory Commission data showed that domestic banks have NT$11.06 billion (US$346.93 million) in exposure from TransAsia, which on Tuesday announced plans to dissolve its operations to curb losses.

State-run Taiwan Cooperative Bank (TCB, 合庫銀行), lead bank of a syndicated loan to the airline, said restructuring would be a more favorable option, as lenders would not need to find buyers for collateral assets.

TransAsia owes TCB and other banks NT$4 billion from a 2011 syndicated loan of NT$5.5 billion to acquire two aircraft, TCB spokesman Davis Hu (胡光華) said.    [FULL  STORY]

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