The airline, which belongs to the FAT Group (樺福遠航集團), first secured a bank loan and later used the loan to fund other affiliates of the group, the CAA said. However, it used the loan to fund group affiliates, which was inappropriate,” Han said. Han said the administration had no access to any of the FAT affiliates’ financial statements, adding that if any of these companies encountered financial difficulties, FAT would be affected. In 2009, the airline was recapitalized by Chang and his Huafu Enterprise Co (now FAT Group), after a financial restructuring plan for FAT was approved by the court. In addition to FAT, the FAT Group owns companies in construction, asset management, travel, real-estate development and other sectors.

Source: Taipei Times September 17, 2017 15:56 UTC