TransAsia’s biggest lender to convene meeting on carrier’s closure

The biggest creditor of the financially troubled TransAsia Airways, Taiwan’s third largest airline, said Wednesday that it will call a meeting with other financial institutions to discuss the response to the carrier’s abrupt decision to close its operations.

Mega International Commercial Bank also called on TransAsia to give a detailed plan of how it plans to repay its loans.

The bank, which holds most of the airline’s debts, said it will meet Thursday with other TransAsia creditors.

Earlier Wednesday, Taiwan Cooperative Bank Co., one of the creditors, reached an agreement with TransAsia to sell two of its A330 planes to help recover an outstanding amount of NT$4 billion on a loan of NT$5.5 billion (US$172.25 million) that was made to the airline in 2011.

TransAsia announced unexpectedly Tuesday that it was dissolving the company and laying off all of its employees because of financial difficulties and concern that its prospects will not turn around.

On Wednesday, a TransAsia check for NT$114 million, written to Taiwan Cooperative Bank, bounced because all of the company’s assets now belong to its creditors.

Source: Focus Taiwan News Channel

Leave a Reply

Your email address will not be published. Required fields are marked *

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.