(Yicai Global) July 12 -- A creditor of Tsinghua Unigroup has filed for the troubled Chinese semiconductor maker to go bankrupt.

A creditor has applied for Tsinghua Unigroup to be restructured due to its insolvency, the Beijing-based chipmaker said on July 9 after being notified by the Beijing No. 1 Intermediate People's Court.

Huishang Bank, a Hefei-based urban commercial bank that has assets exceeding CNY1 trillion (USD154.5 billion), was behind the move, according to the National Enterprise Bankruptcy Information Disclosure Platform.

The semiconductor company will fully cooperate with the court in judicial review, actively promote debt risk resolution, and support the court in safeguarding the legal rights and interests of creditors in accordance with the law, it added.

The application is still in the review stage and it is uncertain whether the court will give the green light to the company's reorganization, National Business Daily reported today, citing Xu Feng, chief partner of Jiucheng Law Firm in Shanghai.

Established in 1988, Tsinghua Unigroup was investing heavily in memory chip manufacturing in recent years but its big purchases caused the firm to run up huge debts. Some of its listed units are Guoxin Micro and Unisplendour.

The company has issued eight bonds since 2016 but six of them have defaulted as of June 30, resulting in bad debts of almost CNY6.9 billion (USD1.1 billion), according to financial data provider Wind. In December, another CNY1.3 billion bond is set to mature.

In the first half of 2020, Tsinghua Unigroup's net losses were around CNY4.5 billion, up 23 percent from a year ago, according to its earnings report.

Unit Guoxin Micro's stock price [SHE:002049] was 1.7 percent down at CNY167.40 (USD25.90) in the afternoon.

Editor: Emmi Laine, Xiao Yi