A Thai court gave final approval to a revised plan to restructure $600 million debt of TPI Polene PCL (TPIP.BK), allowing the country’s number three cement maker more time. "As nobody opposes the revised plan, the court decides to approve it," a Central Bankruptcy Court judge said. The news helped push TPIP shares up almost 1 per cent to 26 baht at 0345 GMT, bucking a 0.23 per cent drop in the overall Thai stock market. The court ruling will also enable the firm to revise the terms of debt payment.
TPIP asked the court to give it 12 more months, until the end of 2005, to restructure its debt as it wanted to repay overdue interest of 5 billion baht ($123m) in cash instead of converting it into equity. In September, the court rejected the company’s request, saying TPIP had to renegotiate the debt plan with creditors and re-submit it. The major creditors include Bangkok Bank (BBL.BK), Krung Thai Bank (KTB.BK) and German development bank Kreditanstalt fuer Wiederaufbau.
TPIP, 49 percent owned by Thailand’s biggest corporate debtor, Thai Petrochemical Industry (TPI.BK), has been restructuring $1.1Bn of debt since 2001. It raised $285m from a public share offer in January and used the proceeds to buy back debt at a discount, which helped reduce its debt to $600m.