Datong Group said that it holds about 39.67% of the comprehensive shares of CPT, which has been declared bankrupt by the court, and will appoint accountant Ma Guozhu, lawyer Liu Huijun and lawyer Yang Xiaobang as bankruptcy administrators. The period for claiming claims is from now until October 21 this year. The first creditors meeting will be held on October 28, 2022 at 9:45 a.m. at Nos. 42, 43, 44, 45, and 46 on the fourth floor of Taoyuan District Court. Court convened.
Datong’s announcement stated that CPT’s assets were insufficient to cover its liabilities, and many creditors competed to apply to the court to enforce CPT’s land, buildings, equipment and other assets, and CPT could no longer continue to produce and operate. On September 18, 108, in accordance with the provisions of Article 211 of the Company Law, a resolution was made to petition the court to declare bankruptcy, so that employees and creditors can be fairly compensated in accordance with the law.
The court determined that Huaying Company could not repay the debts due and the assets were insufficient to repay all the debts, so the court ruled to declare bankruptcy.
According to the data, CPT was established in May 1971 and is one of the world’s largest display manufacturers and one of the “panel five tigers” in Taiwan. It was an important manufacturer in Taiwan in the early development of video tubes, the key components of video products, and its display production was once the top three in the world, thus pushing Taiwan to the world stage of “display kingdom”. In 1997, Huaying introduced Japanese technology, which kicked off the flattening of Taiwan’s displays. Some media on the island even called it “the Whampoa Military Academy of Displays”.
However, for more than ten years, due to poor management and the impact of the strong rise of the mainland panel industry, the market share of CPT has continued to decline, and its performance has also plummeted. Coupled with the series of impacts caused by the debt problem of CPT, as well as asset impairment, increased operating costs, and intensified market competition, CPT experienced its first loss in 2018 after its reorganization in 2010, with a loss of 4.966 billion yuan in fiscal year 2018. .
According to Sigmaintell’s data, as of the third quarter of 2018, the global market share of CPT function machine panels was about 10.5%.cell phoneThe global market share of panels is about 5.4%, the global market share of tablet PC panels is about 15.8%, and the global market share of automotive display panels is about 7.4%.
On December 13, 2018, CPT announced that it would apply to the court for reorganization and emergency punishment in accordance with the relevant provisions of the Company Law, in order to prevent creditors from seizing false punishments (asset freezing).
It is reported that both CPT and its 100%-owned subsidiary CPT Bermuda have failed to repay their debts. The bank has the right to declare CPT’s default, and the due loan must be repaid immediately, which will exacerbate the working capital gap. , and accelerate the debt collection of all creditors, which may lead to a serious shortage of working capital, and face the crisis of being forced to suspend production, suspend operations, or even suspend business.
According to the self-assessment figures of the individual financial report released by CPT for September at that time, its total liabilities were NT$34.8 billion (about 7.76 billion RMB). The lawyer signed two trust deeds, and the total trust amount was capped at NT$600 million.
In addition, Huaying Technology, which CPT holds 26.37% of the shares, also received a notice from its second largest shareholder, Fujian Electronic Information Group, requiring CPT to repay Huaying Technology’s 3.3 billion yuan payment, of which about 2 billion yuan has been overdue. Yuan, and sent a letter on December 4, 2018 to demand repayment, otherwise legal action will be taken. Huaying Technology’s move has led to Huaying’s 100% holding subsidiary Huaying Bermuda’s loan of US$53 million to Hong Kong Minsheng Bank, which could not be smoothly extended, and a loan default will occur on December 18. There are about 100 million yuan of unpaid payment to 11 suppliers in Taiwan, and a letter of deposit from the supplier has been received.
On March 11, 2019, China Picture Tubes announced that it will carry out large-scale layoffs in May 2019. At that time, there were about 4,500 employees, and the layoff rate was about 44.44% to 55.55%, involving about 2,500 production line employees and staff. At the same time, in terms of panel production lines, CPT will also make cuts. In the future, only the 6th generation line will be retained, focusing on the most economical production line for small and medium-sized panels, and the other two 4.5th generation lines (one of which has been Discontinued, only for experimental lines), all will be sold in the future, and rental is not ruled out.
On August 29, 2019, CPT issued a statement saying that the application for reorganization was rejected by the court, the order has been reduced to zero, and a large number of workers will be dismissed in accordance with the law. Due to the huge arrears of electricity bills, the factory of Taiwan display panel manufacturer Huaying will be powered off on September 2, and production may not be possible in the future. According to the layoff plan, only 50 of the more than 2,100 employees of CPT are expected to remain, which means that 97% of the company’s employees will be fired.