ABIT Computer, a maker of high-performance mainboards and graphics cards, is about to sell its headquarters in Taipei, Taiwan, in order to return debts. The report follows information about ABIT’s attempt to sell off its manufacturing foundry and start outsourcing. Potentially, the stories may indicate that investors of the company are performing asset-stripping and are planning to shutdown the company.

During a meeting on the 23^rd of December, 2005, shareholders of the struggling mainboard maker reportedly approved the company’s plan to transact its office building in Taipei, Taiwan, to Deutsche Bank, in order to cut its debt. The move is expected to allow the company to cut its debts to banks to $57-60 million, DigiTimes quotes Remond Lu, the chairman of the company, as saying.  

The only building in Taipei, Taiwan, that ABIT owned was its headquarters, where the whole staff was located. In case the company has to change the location, it will have to transfer not only the executive, marketing and sales teams, but also engineers, which may slowdown development of certain products. In the worst case, after selling its manufacturing facilities, the company may cut-down its engineering staff as well.

Based on an ABIT’s revised financial report available on October 31, the company’s net worth has declined to $51 million from $325 million in November 2004, claims Commercial Times news-paper of Taiwan.

ABIT was recently ordered by Taiwan authorities to re-submit its financial results for the years 2003, 2004 and 2005.