Taiwan Polysilicon has indicated that Taipei Fubon Bank, the arranger of a syndicated loan consortium of 14 local banks, has stopped negotiation for a joint lending of NT$10.7 billion (US$357 million), signifying the company is likely to obtain the syndicated loan.
According to industry sources, the stoppage of negotiation was because the Taiwan-based polysilicon maker did not agree to the two conditions set by the consortium for the loan: the company's cash flow is subject to the consortium's supervision; and LCY Chemical, the largest shareholder of the company with a stake ratio of 63.78%, should add investment in the company to cover cumulative losses.
As international prices for polysilicon had continually dropped to US$16-17/kg in 2013, Taiwan Polysilicon was forced to stop production, the sources indicated. Since polysilicon prices have now risen to US$20-22/kg currently, Taiwan Polysilicon plans to resume production but the plan is likely to be frustrated by the difficulty to obtain the syndicated loan, the sources said.