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The Xiamen-based company is about to come up with a regrouping scheme this November, disclosed a source close to the Amoi reorganization and liquidation working group lately, noting that the company will strive to get back to the stock market next year.
After suffering losses for four years in a row, Amoi is urged to get delisted from the Shanghai stock exchange (SHSE). The company, which reported a CNY 115 million loss for the first half of 2009, is likely to incur another loss in the January-September period.
Amoi is possible to make both ends meet in the fourth quarter of the year, provided that its reform plan turns out to be a success, said an executive for the company.
In its financial report for the first half of 2009, the electronics maker said that its effective controller China Electronics Corporation (CEC) was in discussion with the municipal government of Xiamen to seek a way out for the company.
Amoi is expected to retain its mobile phone operation after the reorganization, according to the source, adding that the long-brewing reshuffle will be led by the state-owned assets supervision and commission of Xiamen.
The decision to retain the mobile phone business has gained approval from the local court, said Amoi in a statement in September. Moreover, the company is entitled to find a peer that will take charge of its mobile phone assets.
"Currently, the reshuffle and liquidation working group is well on track to seek a company for the Amoi mobile phone business," said the source, "the mobile phone patch is crucial, not only to the company itself, but also to the Xiamen electronics industry as a whole."
In a bid to rescue the insolvent company, the shareholders of Amoi will have to sell part of their holdings to pay off debts, disclosed another source. Presently, CEC has paused a capital support to the Xiamen company.
A stake transfer will need an approval from the investors of the company, according to the source, without giving details.
Amoi is set to complete the asset integration and business reshuffle by the end of this year, said the source, noting that an asset audit and evaluation started in August.
(USD 1 = CNY 6.83)
Source: www.hexun.com (October 09, 2009)
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