TPI Polene sees end of debt restructuring, Thailand

TPI Polene sees end of debt restructuring, Thailand
Published: 31 March 2008

TPI Polene expects to complete refinancing of its restructured debt this year before completing its fourth cement line at an additional cost of THB6bn.  

Its liabilities under restructuring and rehabilitation are worth
THB8.04bn, but it will pay down US$10m (THB315m) next Monday.  

"We’re negotiating with five creditors. If we succeed in refinancing the restructured debt, we’ll file a petition with the Bankruptcy Court requesting to exit business-reorganisation proceedings as soon as possible, in order to move on with our investment projects," Prasert Ittimakin, senior vice president for finance and accounting, said yesterday.  

TPI Polene has already spent about
THB3 billion on the infrastructure for the new cement line, which will have annual production capacity of 3Mt to 4Mt.  

The project needs
THB6bn more for equipment and machinery and 18-24 months before it goes on stream.  

"We expect to complete the plant rapidly. However, we need to consider market conditions carefully and prioritise our financial activities before making a final decision," Prasert said.  

The company has targeted revenue growth of 5-7 per cent this year from last year’s
THB26.93 billion, with petrochemical prices remaining high and cement prices rising slightly.  

It will focus more on petrochemicals, making low-density polyethylene (LDPE) and ethylene vinyl acetate copolymer (EVA).  

Its cement and concrete business is forecast to expand 3-5 per cent, assuming that the overall market remains flat this year.