Debt negotiations between Chimei Innolux (CMI) and its creditor banks have hit a deadlock as the two sides hold different views over the ratio of markup to be added to the original interest payments, according to a Chinese-language Commercial Times report.

During a recent round of negotiations, the creditor banks in general have reached a consensus to allow CMI to defer its principal payments of NT$75 billion (US$2.5 billion) due in 2012 and another NT$75 billion due in 2013 until 2015, said the paper.

However, CMI has to pay back the 2012 principal payments at installments of 15%, 30%, 35% and 20% a year from 2012-2015, while paying back the 2013 principal payments at 20%, 30% and 50% a year from 2013-2105, the paper added.

The creditor banks also demanded markup of 1pp to CMI's original interest payments, to which CMI has not yet agreed, the paper said.

To facilitate the negotiations, CMI promised to elect a new chairman in mid-February, or at the end of March at the latest, the paper indicated. 

Source:digitimes