Tsinghua Unigroup seeks fresh capital for massive bailout- PingWest

Tsinghua Unigroup seeks fresh capital for massive bailout- PingWest

Tsinghua Unigroup seeks fresh capital for massive bailout

July 21, 2021 6:25 pm

Chinese chip maker Tsinghua Unigroup, is seeking a massive bailout from a group of investors amid bankruptcy proceedings that may force the company to exit the semiconductor sectors.

Detail:

Unigroup sunk into debt hole with more than CNY200 billion in total liabilities, it is looking for capital to help it to clear its debts to continue its semiconductor and cloud computing businesses, according to company’s statement published on the National Enterprise Bankruptcy Information Disclosure Platform.

According to statement, investor must have at least CNY50 billion in total assets in the past year or a minimum requirement of CNY20 billion in net assets.

The application of the Unigroup’s bailout must be submitted by September 15, investor can form a consortium to participate the bid.

Unigroup is also trying to sell its 46.45 percent stake in information technology infrastructure provider Unisplendour Corporation to potential investor.

Contect:

Launched in 1988 by China’s top university Tsinghua University, Unigroup was initially known as Tsinghua University Sci-Tech General Company and renamed in 1993.

The company, which has 286 subsidiaries on its book, fell into debt trouble last summer when it cannot repay the principal of its bond.

In December, 2020, Tsinghua Unigroup defaulted on USD450 million Eurobond due on Thursday as it missed the deadline to repay the principal.

The latest default by the company come a month after it defaulted on a CNY1.3 billion onshore bond. The default led to a downgrade by China Chengxin Credit Rating Group and a suspension of trading for its debt in Hong Kong.

The issuer and the guarantor are Tsinghua Unigroup subsidiaries, Tsinghua International Holdings and Tsinghua Unigroup International.

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