Sun, 28 Nov 2021

Beijing [China] October 21 (ANI): Chinese company Tsinghua Unigroup is in talks with seven potential investors to tackle its financial crisis as the company is struggling to cope up with the risk of bankruptcy.

Tsinghua Unigroup is a Chinese chipmaker, which recently held a creditors' meeting exactly three months to the day when it began the restructuring process, to discuss how CNY108.2 billion (USD16.9 billion) worth of debts will be repaid, YICAI global reported.

The company is expected to complete a compensation plan by February 27, 2022, for creditors to vote on, according to the Securities Times.

"Investors should have audited assets of at least CNY50 billion (USD7.8 billion) within the last year or those attributable to the parent should be no less than CNY20 billion," officials from Tsinghua Unigroup informed.

Established in 1988, the Chinese company Tsinghua Unigroup has invested heavily in memory chip manufacturing but its big-spending caused the firm to run up huge debts, YICAI Global reported.

The chipmaker has logged revenue of USD9.7 billion in the first eight months, a jump of 32 per cent from the same period in 2020. (ANI)

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