Taiwan: Save A Company, Lose The Election?

The Kuomintang weighs whether to rescue crony-run outfits

Back in August, a check written by An Feng Group to pay for raw materials bounced. No problem. Because the chairman of the Taiwanese steelmaker is an influential member of the ruling Kuomintang, he was able to line up a bailout from a kmt-controlled investment firm. But when An Feng recently bounced a second check, party officials failed to come to the rescue. The group will have to raise the $5 million it owes on its own. That's a small sum. But for An Feng, whose forays into construction and offshore steel mills left it with $1.1 billion in debt, the kmt's decision to stop support could mean bankruptcy.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.