《TAIPEI TIMES 焦點》Farglory agrees to suspend Dome construction work

By Crystal Hsu / Staff reporter

Farglory Land Development Co （遠雄建設） yesterday issued a statement saying it would suspend construction on the Taipei Dome project in compliance with the city government’s order, but would not take responsibility for any consequences.

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“The company will be cooperative and halt construction on the dome project” after the Taipei City Government gave the order on Wednesday night, the company’s vice president of communications Tsai Chung-i （蔡宗易） said.

The statement came at noon and marked a softening from the firm’s earlier defiant rhetoric that it would seek an injunction so it may press ahead with construction.

The company said late on Wednesday night that it was shocked at the suspension order.

Farglory called an emergency meeting yesterday morning when its share price plunged by the daily limit amid rumors that state-run lenders might freeze its credit.

Farglory stock closed near the lower trading limit, shedding 6.83 percent to NT$37.50 yesterday, much deeper than the TAIEX’s 1.1 percent drop. The fall contributed to declines in construction and financial plays, which slid 1.54 percent and 1.96 percent respectively, Taiwan Stock Exchange data showed.

The developer is the main subsidiary of Farglory Group （遠雄集團）, whose business interests include Farglory Life Insurance Co （遠雄人壽）, Farglory Hotel Co （遠雄悅來飯店）, the Farglory Free Trade Zone （遠雄自由貿易港區）, Taiwan Solar Energy Corp （元晶太陽能） and Golden Biotechnology Corp （國鼎生物科技）.

“We have turned over hundreds of pages of documents to the city government as required and fail to see safety concerns that warrant the suspension,” Tsai said, adding that the construction delay might give rise to structural safety concerns, given the site’s proximity to the Taipei MRT’s Bannan Line （板南） and the Songshan Cultural and Creative Park （松山文創園區）.

Farglory will respect the city government’s opinions over the Dome project, but must not be blamed for any fallout caused by the suspension, Tsai said.

The company would consult its lawyers and may file an injunction order within a couple of days to minimize the damage, he said.

The suspension has sparked concerns over the NT$15.4 billion （US$502.4 million） syndicated loan Farglory Land secured in 2011 from mostly state-run lenders.

The Ministry of Finance, the largest shareholder in state-run banks, said the lenders would not freeze the credit of any client without proper cause.

新聞來源：TAIPEI TIMES