Proview's Shenzhen subsidiary faces liquidation
Proview Technology (Shenzhen) is headed for liquidation, just four months after taking a record settlement from Apple for the iPad's trademarks on the mainland.
In a filing with the Hong Kong stock exchange yesterday, parent Proview International Holdings said the Shenzhen Intermediate Court had appointed a liquidation administrator for its debt-mired subsidiary on October 24.
The winding-up process for Proview Technology followed the final judgment made on September 10 by the Higher People's Court of Guangdong Province, which decided in favour of the appeal lodged by creditor Fubon Insurance.
That ruling revoked the first instance judgment made on March 27 by the Shenzhen court, which had rejected Fubon's bankruptcy application against Proview Technology.
Sun Min, the chairman and chief executive of Proview International, said further announcements regarding any significant development in that lawsuit "will be made when appropriate". The court-appointed liquidation administrator was not identified.
The liquidation of the Shenzhen subsidiary may have slammed the door to Wan Chai-based Proview International and its plan to resume trading of its shares, which have remained suspended since August 2010.
The Listing (Review) Committee of the Hong Kong stock exchange decided in September to formally delist the company, which has asked for a further review.
It also marks a sharp fall for the company, several months after its mainland subsidiary received a record US$60 million payout from Apple, a settlement mediated by the same Guangdong court.
That deal ended a long and acrimonious dispute over the mainland trademarks of the iPad, Apple's popular media tablet.
Founded in 1989 by Taiwanese businessman Rowell Yang Long-san, Proview International was one of the world's largest manufacturers of cathode ray tube and liquid crystal display computer monitors.
The company took on plenty of debt to fund its expansion in the past decade. But the global financial crisis put a huge strain on its business in 2008, when the firm posted its first loss.
The suspension from trading soon followed, as the firm scrambled to restructure and sell off assets on the mainland to pay its debts.