ASAT Holdings Limited Announces Additional Forbearance Period Through July 1, 2009
Jun 1, 2009 1:00:00 PM
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View Additional ProfilesHONG KONG and MILPITAS, Calif., June 1 /PRNewswire-FirstCall/ -- ASAT Holdings Limited (OTC Bulletin Board: ASTTY.OB) (the "Company"), a global provider of semiconductor package design, assembly and test services, today announced that it has received an Extension of Forbearance Period under the Forbearance Agreement with its Noteholders and lenders under the Purchase Money Loan Facility dated as of March 2, 2009. The extended duration of the forbearance agreement is for an additional period of 30 consecutive days, commencing on June 1, 2009 and expiring on July 1, 2009 ("Additional Forbearance Period"). The same terms and conditions of the original Forbearance Period will stay in effect for the Additional Forbearance Period.
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Under terms of the forbearance agreements, the lenders agree to forbear from exercising their rights and remedies against the Company with respect to certain designated defaults until after July 1, 2009, subject to certain early termination events. For further details regarding the terms of the forbearance agreement, see ASAT Holdings' report on Form 6-K dated March 2, 2009 furnished to the Securities and Exchange Commission and available at www.sec.gov.
The Company requested the additional time as it continues discussions with its Noteholders and the lenders under the Purchase Money Loan Facility to finalize an appropriate capital structure to support ASAT's long-term business objectives.
Skadden, Arps, Slate, Meagher & Flom LLP is advising ASAT. The Noteholders are being advised by O'Melveny & Myers LLP.
About ASAT Holdings Limited
ASAT Holdings Limited is a global provider of semiconductor package design, assembly and test services. With 20 years of experience, the Company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. Today, the Company has operations in the United States, Asia and Europe. For more information, visit www.asat.com.
Safe Harbor
This news release contains statements and information that involve risks, uncertainties and assumptions. These statements and information constitute "forward-looking statements" within the meaning of federal securities laws including Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Such forward-looking statements, including statements regarding expected revenues, liquidity and financial position, our manufacturing cost structure, our operational efficiencies, our relocation and reorganization costs, our customer retention, growth and expectations, our continuation as a going concern and our capital needs, involve known and unknown risks, uncertainties, assumptions and other factors that could cause the actual performance, financial condition or results of operations of ASAT Holdings Limited to differ materially from those expressed or implied in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those contained in these statements as a result of a variety of factors, including: whether the Company can remain a primary source of packaging and assembly services in the semiconductor industry and continue to stay at the leading edge of packaging technology; the ability of the Company and its shareholders, noteholders, and other lenders to agree to and effectively implement a debt restructuring plan that will materially improve its capital structure and financial flexibility, in a timely manner or at all; the risk that the Company may not be able to continue as a going concern if such a plan is not so implemented and that its operations may be materially adversely affected during or after its discussions with noteholders if, for example, its customers and/or suppliers determine that the Company presents credit or supply risks; the Company's ability to maintain and enhance its operational metrics on an ongoing basis; the risk that the Company will not be able to obtain adequate future funding for its operations and to service its outstanding debt obligations (including, without limitation, its payments obligations under its 9.25% Senior Notes), particularly in light of the current global economic downturn and credit crisis; the Company's dependence on the highly cyclical semiconductor market; acceptance and demand for the Company's products and services; and those risks, uncertainties, assumptions and other factors stated in the section entitled "Risk Factors" in our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission on October 30, 2008 and the section entitled "Risk Factors" in our current reports on Form 6-K filed with the United States Securities and Exchange Commission containing quarterly financial information. The forward-looking statements in this release reflect the current beliefs and expectations of the Company as of this date, and the Company undertakes no obligation to update these projections and forward-looking statements to reflect actual results or events or circumstances that occur after the date of this news release.
SOURCE ASAT Holdings Limited
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Jim Fanucchi of Summit IR Group Inc.
+1-408-404-5400
ir@asat.com
for ASAT Holdings Limited
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