Yanin Leather Company Limited was one of three listed Taiwanese companies that last week acknowledged they are unable to repay their unsecured corporate bonds because of liquidity problems.

Hung Fong-hsiao, assistant manager at Yanin, a maker of leather products, reported that the company’s 360 million New Taiwan dollars worth of bonds will expire in June, leaving the company heavily in debt.

"It's already clear that we are unable to repay the debt because of a lack of sufficient revolving cash. But we will discuss with the underwriting banks to see if we can defer the payment," said Hung.

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