The Channel logo

News

By | Tony Smith 21st January 2005 11:28

ABIT reaches accord with creditors - report

Cash deposits may be unfrozen

Motherboard maker ABIT may have reached an agreement with its creditors to defrost cash and credit lines frozen last month.

The deal - described by sources close to the company, cited by DigiTimes, as "tentative" - will allow the company to make use of those assets for its business operations.

ABIT had TWD1.65bn ($51.8m) of cash and other short-term assets at the end of November 2004. However, a sizeable portion of that sum was frozen last month by the company's banks after it became the subject of accounting fraud allegations. The Taiwanese Stock Exchange downgraded ABIT's stock.

It's not known how much cash is tied up in the banks, but DigiTimes' sources claimed that they expect ABIT to show how it intends to pay off its debts before they will release its deposits. It is said to have a deadline of 10 March to submit the plan and a copy of its 2004 financial report. Failure to do so could see recently opened lines of credit closed off, the report notes. ®

Related stories

ABIT intros video card overclock tool
ABIT debuts holo ID stickers for mobos
AMD CPUs to sport anti-fake holograms

alert Send corrections

Opinion

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Features

money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals
Angus Highland cow
Pet carriers not wanted for whitebox stampede
FBcoldstoragearray
Sorry OpenStack and Open Compute, we're not all Facebook
Gary Kovacs, CEO of AVG. Pic: World Economic Forum
Scammy download sites? Government snooping? Run of the mill for Gary Kovacs