Tsinghua Unigroup Needs Bankruptcy Restructuring, Creditor Says
A creditor of Tsinghua Unigroup Co. Ltd. is demanding bankruptcy restructuring of the once high-flying semiconductor designer, which now sits under massive piles of debt.
Creditor Huishang Bank Co. Ltd. filed a petition seeking a court-led reorganization of the state-owned chip conglomerate, citing unpaid debts and insufficient assets, Tsinghua Unigroup said Friday. The company said it received a Beijing court notice of the filing.
Tsinghua Unigroup said it is unclear whether the court will take accept the case and there are uncertainties about whether the company will enter bankruptcy proceeding. Tsinghua Unigroup is 51% owned by China’s Tsinghua University.
Beijing-based Tsinghua Unigroup has missed payments on several bonds, both domestic and overseas, since last year. To repay debt, the company has undertaken a series of asset sales.
At the end of September 2020, Tsinghua Unigroup’s liabilities totaled 52.78 billion yuan ($8.14 billion), compared with cash of 4 billion yuan, according to China Chengxin International Credit Rating.
Tsinghua Unigroup once stood in the vanguard of China’s hopes of developing a home-grown semiconductor industry. Since 2013, it embarked on a steady stream of acquisitions and investments to diversify the business but failed to generate income quickly in an industry characterized by big initial investments and long payback periods.
Contact reporter Han Wei (email@example.com) and editor Bob Simison (firstname.lastname@example.org)
Download our app to receive breaking news alerts and read the news on the go.
Follow the Chinese markets in real time with Caixin Global’s new stock database.
- MOST POPULAR