Fitel secures court protection on its assets

First International Telecom (Fitel) has secured approval from the local Taiwan courts to prevent its creditors from seizing assets.

Fitel, which is a PHS operator and WiMAX licensee for the northern part of Taiwan, made a request last week with the court for protection of its assets while it undergoes a corporate restructuring in an attempt to deal with its recent financial difficulties.

Fitel failed to honor checks worth NT$86 million (US$2.7 million) earlier this month and the company currently owes an additional NT$3.5 billion in bank loans, according to company data.

The court protection allows Fitel to continue to utilize its bank deposits to maintain its daily operations as well as to map out details to implement a corporate restructuring plan, which is still subject for approval from the court, Fitel said.