Solar energy firm’s liquidation plan approved by shareholders

Taipei-Green Energy Technology Inc., a Taiwanese financially troubled multicrystalline solar wafer maker, said Friday that the company's liquidation plan has been approved by its shareholders.

Green Energy Technology, a subsidiary of conglomerate Tatung Co., held a special general meeting Friday to allow its shareholders to consider the liquidation plan and vote on it.

The solar energy supplier said that in a fast changing market that has pushed down product prices, its production costs have topped the selling prices, so the company continues to suffer losses and cannot produce cash flow for survival.

Therefore, Green Energy Technology decided to go through liquidation, and after securing approval from shareholders, it will start a liquidation process, while an exact liquidation timetable is pending a decision by the liquidators.

In mid-July, Green Energy Technology proposed the liquidation plan and a massive layoff of its 284 employees.

But in Friday's announcement, the company did not mention how it would carry out the layoffs.

The loss-incurring solar energy company was delisted from the local over-the-counter stock market in May due to its heavy financial burden.

In the fourth quarter of last year, Green Energy Technology booked NT$3.12 billion (US$99.36 million) in asset impairment losses, so the company posted about NT$3.72 billion in net losses or NT$8.56 per share in the quarter.

In 2018, when the global solar market faced a supply glut, Green Energy Technology incurred NT$16.34 in loss per share, compared with NT$1.49 in loss per share a year earlier.

As a result, Green Energy's book value per share fell from NT$3.30 at the end of the third quarter to minus NT$5.53 at the end of the fourth quarter of last year, according to data compiled by the TWSE. As of the end of the second quarter, its book value per share even plunged to minus NT$17.28, the TWSE data showed.

Green Energy Technology's liquidation is not the only bad news for Tatung.

On Thursday, Chunghwa Picture Tubes Ltd., a flat panel subsidiary of Tatung, announced it would lay off all of its 2,100 employees, a decision which will take effect in 60 days.

The Taoyuan City Government on Friday urged Tatung to help Taoyuan-headquartered Chunghwa Picture Tube's affected employees, while the parent company responded by saying it will do what it can to provide necessary assistance to the workers.

Tatung said as Chunghwa Picture Tubes' clients have lost faith in the supplier after its bankruptcy protection plan was rejected by the court last year, it was impossible for the flat panel maker to receive any orders and it was also unlikely for the company to resume its operations.

Source: Focus Taiwan News Channel