Thai TPI Polene On debt deal talks

Thai TPI Polene On debt deal talks
Published: 11 May 2004

Thai cement maker TPI Polene PCL said it will hold talks with its creditors Friday to discuss an amendment of its debt restructuring plan, which involves refinancing its $1.1 billion debt.  Prachai Leophairatana, TPI Polene’s chief executive, said the company will propose to refinance its debt and also ask for a waiver of accrued interest.  TPI Polene’s debt amounts to US$950m in principal and $150m in accrued interest.  Prachai said the company has been in talks with state-owned Krung Thai Bank PCL (KTB.TH) to guarantee its planned debentures of around US$600m for debt refinancing.  The company will also use its cash flow for the refinancing.

Prachai said the company’s net profit was 2.30 billion baht in the first quarter this year, compared with THB317.9 million a year earlier, thanks to huge debt restructuring and foreign exchange gains.  In the January-March period, sales amounted to THB5.33 billion, compared with THB4.55 billion in the year-ago quarter, due to an increase cement consumption. ($1=THB40.535)