Ministry of Justice supports freezing TransAsia’s trust fund

The Ministry of Justice (MOJ) supports the freezing of a NT$1.2 billion (NT$37.57 million) trust fund established by TransAsia Airways, MOJ Vice Minister Chen Ming-tang (陳明堂) said Wednesday.

Meanwhile, Cabinet spokesman Hsu Kuo-yung (徐國勇) said that NT$600 million of the fund will be allocated for severance payments to the airline’s employees, and the other NT$600 million will be used for refunds to customers and travel agencies.

According to Ministry of Labor estimates, it will require NT$640 million to cover the severance payments to TransAsia’s 1,795 employees, which will be made up of NT$600 million from the frozen trust fund and amounts from liquidation of the company’s assets, Hsu said.

In addition, the Securities and Futures Investors Protection Center under the Financial Supervisory Commission (FSC) will step in to help shareholders seek compensation from the airline, Hsu said after an inter-ministerial meeting to discuss issues related to the TransAsia’s closure.

TransAsia announced Tuesday the termination of all its flights with immediate effect, after an extraordinary board meeting passed a resolution to dissolve the company.

The FSC and prosecutors have launched an investigation into possible insider trading in the company’s shares, according to Hsu.

Source: Focus Taiwan News Channel

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