Taiwan Polysilicon Corp, which makes polysilicon for solar cell products, yesterday said it filed for reorganization to save the company from bankruptcy.

The statement came after a court ruled that Taiwan Polysilicon has to fulfill its obligation to pay a promissory note of NT$330 million (US$10.74 million) from Ta Chong Bank, a note of NT$300 million from Shin Kong Commercial Bank and a note of NT$310 million from state-run Mega International Commercial Bank, company president Wu Shian-jin said in a press conference yesterday.

Wu said that the company has not yet paid NT$50 million to Shin Kong Commercial Bank and another NT$200 million to Mega International Commercial Bank.

The filing for reorganization can allow the company’s manufacturing facilities to avoid being sold at low prices to pay the debts, Wu said, adding that Taiwan Polysilicon will need the facilities when the market sentiment for polysilicon improves.

“It is the best way to safeguard the rights of our shareholders and creditors,” Wu said.

Meanwhile, the company also announced that last quarter it conducted a new round of asset reductions worth NT$2.27 billion, after an asset reduction of NT$8.95 billion a quarter earlier.

Taiwan Polysilicon is a subsidiary of LCY Chemical Corp, which makes petrochemical products, according to LCY Chemical.

LCY Chemical has a 64.9 percent stake in Taiwan Polysilicon, it said.