The Central Bankruptcy Court yesterday rejected debt-ridden cement maker TPI Polene Plc’s request for an extension of its business rehabilitation timeframe by another year, requiring the company to revise the details of its business plan before seeking additional time. TPIPL requested that the its rehabilitation plan be extended by one year with an expiry date in December 2005, from the previously set deadline in December this year.
According to legal advisor to TPIPL Chavalit Atthasart, the court considered that TPIPL has yet to revise its plan and suggested that the custodian should hold a meeting of the firm’s creditors’ committee to grant approval for the plan’s revision and then come up with the revised plan and resubmit the firm’s extension request to the court. “The court’s rejection of the extension request is in line with bankruptcy rules,” the court’s chief justice said.
The chief justice of the court pointed out that TPIPL’s extension request was against the bankruptcy law which states that a request for extension of the timeframe of a rehabilitation plan can be made only after the plan has been revised. The court confirmed that the TPIPL’s plan administrator has no other way out but to abide by the law, the chief justice added.
TPIPL earlier submitted the extension request to the court, given that it needs time to revise its business rehabilitation plan and find the possible best way for its debt restructuring scheme. The company’s outstanding debt stands at $600 million and major creditors include Bangkok Bank Plc, Krung Thai Bank Plc and KfW of Germany.
Chavalit said TPIPL’s plan administrator wants to revise the plan because TPIPL wants to make unpaid interest repayments in cash to creditors instead of swapping the debt into capital as stated in the plan. He added that TPIPL will follow the court’s suggestion and he believes that the revision of the plan would not take too long. Meanwhile, TPIPL chief executive officer Prachai Leophairatana said he will call for a meeting of all creditors of his firm to consider approving the firm’s extension request.