Debt-ridden Tunghsu Groupis trying to persuade lenders not to take back loans earlier than previously planned or stop loaning it money, even though the maker of electronic display panels said it can’t repay defaulted bonds, reported Caixin.
Tunghsu met Friday with more than 170 creditors and multiple local financial regulators to discuss the defaults by its Shenzhen-listed subsidiary, Tunghsu Optoelectronic Technology Co. Ltd. Investors jokingly called it an “annual conference” of financial institutions.
The unit said last month in a Shenzhen Stock Exchange filing that it was unable to repay more than RMB 2 billion ($283 million) of principal and interest on two notes, citing “short-term liquidity difficulties.”
The news shocked the market as the company had promised to repay the notes on time only a week earlier. It then defaulted on another bond due Monday, according to a Tuesday filing. Tunghsu did not come up with a repayment plan and instead tried to placate attendees, a creditor who was at the Friday meeting told Caixin.