Thai Petrochemical Industry Plc, the country’s biggest corporate debtor, plans to extend its debt-restructuring process for three months while its cement unit, TPI Polene, wants an extra year, The Nation reports. Both TPI and TPI Polene have been negotiating with their respective creditors for a debt workout since 1999. TPI’s rehabilitation plan administrator, a representative from the Finance Ministry, has asked the Central Bankruptcy Court to extend its deadline to exit debt-restructuring for three months to March. From November 4 - when the current plan expires - to December 31 will be a grace period for the court.
TPI Polene’s administrator, Prachai Leophairatana, will seek to extend its revamp plan from December 31 to the end of next year. The move would protect its business from creditors and stiff competition, Prachai said after a press conference on the company’s financial results on Thursday. He plans to file for the extension this month.
TPI Polene’s nine-month net profit soared 25.7 per cent from Bt2.9 billion a year ago to Bt3.73 billion on the construction boom. With another year of breathing room, TPI Polene’s cash flow would be enough to pay back its loans without having to dip into the capital markets, Prachai said. Our business is strong enough to recover next year if we don’t face any interference from third parties, he added.