Dixon Guarantees $7M for Subsidiary Padget Electronics

Dixon Technologies (India) Limited has issued an unconditional guarantee for its wholly-owned subsidiary, Padget Electronics Private Limited, in favor of Quanta Computer Inc. The guarantee is up to an aggregate limit of US$ 7,000,000. This guarantee will be activated if Padget defaults on its invoice terms for the purchase of materials, parts, and components from Quanta. Dixon has stated that this transaction is conducted on an arm's length basis and will be recorded as a contingent liability in its books, with no immediate impact other than the potential exposure up to the guaranteed amount.