First International Telecom (Fitel), the only operator of low-power PHS mobile communication services and one of the six WiMAX licensees in Taiwan, on May 27 saw its main shareholders, creditors and other interested parties pass its corporate restructuring plan, according to the company.
The turnaround plan mainly consists of downsizing its current paid-in capital of NT$4.5 billion (US$140 million) by 60% to NT$1.8 billion to cover cumulative losses, and the issue of up to 2.1 billion new shares to raise additional paid-in capital through private placement as well as creditors' consent to discount Fitel's total debt by over 60% to about NT$5 billion, Fitel pointed out.
The private placement will introduce new shareholders which may take over operating rights, Fitel indicated. For repayment of the discounted debt, collateral will be disposed of and a gap of over NT$1.1 billion will be covered by 7-year installment payments from Fitel's operating cash flow, Fitel noted.
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