On 3 December 2005, Oriental Daily in Malaysia reported that Hualon's Chairman in Taiwan has been declare bankrupt by court of Taiwan.
On 29 November 2005. The Edge reported that Hualon Corp (M) Sdn Bhd's corporate loan continues to appear on the banks' list of non-performing loans.
"The main lenders are RHB Bank, Maybank [Malayan Banking] and Danaharta. They have exposures of RM500 million each. But they have fully provided for these loans and are at comfortable levels now. RHB wrote theirs off in June this year," says a banking analyst.
It is understood that other local banks are also exposed to Hualon, but in much smaller amounts. Some 25 financial institutions underwrote the company's guaranteed revolving underwriting facilities between 1994 and 1997, in varying amounts.The AmBank group is one such party — it guaranteed some RM130 million of Hualon's debt issue then. And just this month, Public Bank made a specific RM20 million one-off provision in its third-quarter numbers, believed to be Hualon-related.
Hualon's major shareholder is Hualon Corp Taiwan, which was delisted from the Taiwan Stock Exchange in January this year.
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